ADNOC leads $18.7 billion proposal to acquire Santos, aiming to build a large LNG business.

From Yahoo Finance: 2025-06-15 19:14:00

Santos, Australia’s second-largest gas producer, supports an $18.7 billion takeover bid from an international consortium led by Abu Dhabi’s National Oil Company. Shares rose 11%, but the deal offers a 28% premium. ADNOC’s XRG proposed $5.76 per share, valuing Santos at A$36.4 billion, the largest all-cash corporate buyout in Australian history.

XRG aims to build a gas and LNG business with 20-25 million metric tons capacity by 2035. Santos, with LNG assets in Asia Pacific, sold 5.08 million tons last year. The Treasurer of Australia will decide on the takeover, which Santos board intends to recommend to shareholders.

Regulatory hurdles loom for the deal, requiring approval from multiple Australian and international bodies. Maintaining Santos’ headquarters in South Australia may help appease regulators, but FIRB approval poses a major risk due to Santos’ control of critical energy infrastructure in Australia. Santos previously rejected bids from Harbour Energy and Woodside Energy.



Read more at Yahoo Finance: ADNOC leads $18.7 billion proposal to buy Australia’s Santos in LNG push