On Wednesday, a consortium led by XRG, an investment company focused on lower-carbon energy and chemicals under Adnoc, announced its decision to withdraw its initial offer and not pursue a binding offer for the Australian energy company Santos.
The consortium stated that despite having a favorable view of Santos, various factors collectively influenced their reassessment of the initial offer.
“After a thorough evaluation, considering all commercial factors and the conditions of the Scheme Implementation Agreement (SIA) required by the Santos Board, the consortium has decided not to move forward with the proposed transaction,” the statement declared.
Previously in June, the consortium spearheaded an $18.7 billion acquisition bid for Santos, aiming to establish a global natural gas leader.
At that time, Santos’ board expressed intent to unanimously recommend Adnoc’s offer to shareholders, pending agreement on the acquisition terms.
Headquartered in Adelaide, Santos operates in Australia, East Timor, Papua New Guinea, and the US, being a key supplier of liquefied natural gas in Australia and Asia. The consortium also includes ADQ, an Abu Dhabi sovereign wealth fund, and global investment firm Carlyle.
According to XRG, the consortium was ready to make new long-term commitments to Australian energy production, aiming to benefit domestic gas consumers and strengthen regional energy security.
As a strategic long-term investor, XRG affirmed its commitment to exploring value-enhancing opportunities in gas & LNG, chemicals, and energy solutions, maintaining a robust pipeline of investment opportunities.
— with inputs from agencies
