Abu Dhabi cancels $30bn Santos takeover bid

In Short:
– Abu Dhabi’s $30 billion Santos takeover was abandoned just before a binding offer.
– Concerns over commercial value and regulatory issues prompted the withdrawal.

Abu Dhabi’s $30 billion takeover of Santos has been unexpectedly abandoned just 48 hours before a binding offer was set to be made.

The XRG consortium, which includes the state-owned oil and gas operator ADNOC and US private equity partner Carlyle, recently proposed an $8.89 per share offer after months of due diligence.

However, they cited concerns over commercial value as the reason for withdrawing their offer.In a statement, XRG confirmed it would not proceed with a binding offer for Santos but expressed a positive outlook regarding the company’s business.

Santos chairman Keith Spence reassured investors about the company’s strategy and leadership, emphasizing that the board is focused on long-term value.

Strategic Challenges

Several issues, including regulatory hurdles and potential delays, prompted XRG’s decision. Australian unions raised concerns about the impact of foreign investment on local jobs.

XRG acknowledged the Santos management’s support during the process and expressed hope for ongoing collaboration in Australia’s energy sector.