Abu Dhabi Consortium Makes $18.7B Bid for Santos

Abu Dhabi National Oil Company (ADNOC), through its investment arm XRG, has led a consortium including Abu Dhabi Development Holding Company and Carlyle in making an all-cash $18.7 billion (A$8.89 per share) takeover offer for Australian oil and gas producer Santos. The Santos board intends to unanimously recommend the offer to shareholders, pending the absence of a superior bid, a binding agreement, and regulatory approvals, including a review by Australia's Foreign Investment Review Board. The consortium aims to grow its global liquefied natural gas (LNG) footprint, focusing on Santos' assets in Australia, Papua New Guinea, and an oil project in Alaska. Major shareholders and industry analysts have expressed support for the deal, but concerns remain over foreign ownership, job security, and keeping Santos' headquarters in Adelaide. The South Australian government has reserved the right to intervene if the deal is not in the state's interests, using recent legislation for oversight. This bid follows earlier, lower offers and comes amid rising global energy prices and increased interest in LNG assets.