Australian oil and gas producer Santos announced today that it has received a non-binding takeover proposal from a consortium led by Abu Dhabi National Oil Company (ADNOC). The offer, valued at $18.7 billion, marks one of the largest foreign acquisition attempts in Australia’s energy sector and highlights ADNOC’s ambitions to expand its global liquefied natural gas (LNG) footprint.
The bid, spearheaded by ADNOC’s investment arm XRG P.J.S.C. and joined by the Abu Dhabi Development Holding Company and the Carlyle Group, offers Santos shareholders $5.76 per share in cash. This represents a significant premium—about 28% above Santos’ last closing price—prompting a surge of over 15% in Santos’ share price, the largest intraday jump since April 2020. The board of Santos has indicated its intention to unanimously recommend the offer to shareholders, provided no superior proposal emerges and satisfactory terms can be agreed upon.
This is the third proposal from the ADNOC-led consortium, following two earlier confidential offers in March. The latest bid underscores the strategic value of Santos’ LNG assets, which include major operations in Australia and Papua New Guinea. For ADNOC, the acquisition is part of a broader strategy to diversify beyond traditional oil and to secure a stronger position in the rapidly growing LNG market, driven by global energy transition trends and rising gas demand.
While the offer has generated excitement among investors and analysts, the deal is still subject to due diligence, regulatory approvals, and final agreement on terms. Notably, Australia’s Foreign Investment Review Board will scrutinize the proposal, given Santos’ key role in domestic gas supply. If successful, the acquisition would give ADNOC and its partners control over critical LNG infrastructure and reserves, further reshaping the landscape of the Asia-Pacific energy market.
“Your donation helps us cover global events, ensuring everyone stays informed.”
(Source: Ainvest | Hart Energy | Reuters)
