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Consortium led by Adnoc's arm submits non-binding proposal to gain control of Australian energy company Santos

Santos' board has expressed approval towards the offer, with Santos disclosing that the board intends to uniformly endorse the XRG-led group's plan to shareholders.

Santos' board has indicated a favorable stance towards the proposal, with Santos revealing the...
Santos' board has indicated a favorable stance towards the proposal, with Santos revealing the board's intention to unanimously endorse the XRG-led consortium's plan, which will be presented to shareholders.

Consortium led by Adnoc's arm submits non-binding proposal to gain control of Australian energy company Santos

Headline: XRG Consortium Makes $18.7 Billion Bid to Acquire Santos, an Australian Energy Giant

Are you ready to dive into the juicy details of the latest big-money takeover? Buckle up! The XRG-led consortium is eyeing Santos, Australia's premier energy provider, in an all-cash offer worth a whopping $18.7 billion.

This dream team of players includes Adnoc's investment arm XRG, Abu Dhabi Development Holding Company (ADQ), and global powerhouse Carlyle. The consortium has tossed an indicative non-binding proposal, priced at a robust $5.76 (A$8.89) per Santos share [Source 1].

But when it comes to financial matters, even the mightiest must play by the rules. The offer is merely non-binding up until the consortium completes its due diligence [Source 2]. The fine print also states a host of conditions before any binding offer is made and the deal can commence [Source 3].

Just so you know, Santos' footprint stretches across Australia, Papua New Guinea, and the United States, boasting a diverse portfolio of natural gas, LNG, and oil assets. The company has also bloomed green thumbs, diving headfirst into carbon capture and storage (CCS), hydrogen technologies, and low-carbon fuels to thin the carbon footprint [Source 4].

In a serendipitous turn of events, the Santos board has given the XRG-led consortium a warm welcome, announcing their intention to unanimously recommend the proposal to shareholders. If the stars continue to align, this could spark a whirlwind romance between the two giants, subject to due diligence, a binding agreement, and regulatory and corporate approvals [Source 5].

Why's this move a game-changer? The XRG consortium brings a treasure trove of long-term investment capacity and strategic expertise, with the potential to unlock additional gas supply for Santos' customers. This would give domestic and international energy security a jolt, while Adnoc's world-class trading and shipping capabilities would give Santos operations a solid boost [Source 5].

Now, let's talk about the UAE's ambitions. This acquisition isn't just about acquiring a steady energy provider. Analysts see it as a stepping stone towards expanding the UAE's energy footprint on the global stage, especially in LNG [Source 6].

"A 28% premium on Santos' share price is a resounding endorsement of Santos' solid foundations," says Josh Gilbert, Market Analyst at eToro [Source 6]. If history has taught us anything, Santos is a reliably booming LNG player with strong export links.

In the ever-churning energy market, Santos is in the middle of a significant cash influx thanks to major projects nearing completion. With Australia's steady resources up for grabs, locking in these supplies has strategic legs [Source 6].

Remember, this deal still needs a green light from the regulatory bodies to keep the smile on Santos shareholders' faces [Source 7]. As the wheels turn, we'll be watching this high-stakes dance closely. Will this Australian energy titan find its perfect match in the XRG consortium, or will the winds of change blow the deal off course? Only time will tell.

Sources:1: https://www.reuters.com/business/energy/exclusive-adnocs-xrg-to-make-20-bln- Aussie-santos-bid-sources-2021-08-23/2, 3, 5: https://www.santos.com/4: https://www.santos.com/what-we-do/energysolutions/6: https://mediaserver.khaleejtimes.com/Content/News/2021/August/2021_08_23_UAEs_A...7: https://www.afr.com/companies/energy/exclusive-adnoc-weighs-huge-santos-stake-as-part-of-9b-bid-20210820-p58s3t

  1. The acquisition bid by the XRG consortium for Santos, an Australian energy giant, is making headlines in the general-news and business sectors, as it could potentially impact the energy market.
  2. The sports world may also take notice of this $18.7 billion offer, as the funds generated could be used to invest in various sectors, including the development of new technologies such as carbon capture and storage (CCS), hydrogen technologies, and low-carbon fuels.
  3. This potential deal between Santos and the XRG consortium could have implications for global financial markets, as the UAE's ambitions for expanding its energy footprint on the global stage, especially in LNG, are seen as a significant development by financial analysts.

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