A consortium led by Abu Dhabi National Oil Company’s investment arm XRG, along with ADQ and Carlyle, has abandoned its non-binding offer to acquire Santos Ltd for about $18.7 billion. The group said that after thorough evaluation, it could not agree on binding terms under the Scheme Implementation Agreement required by Santos’ board.
The original bid, submitted in June, priced Santos shares at AUD 8.89 each, including a 28% premium over the prevailing share price at the time. It valued the company at approximately AUD 36.4 billion, including net debt.
Santos revealed that the price it had recently proposed to finalise the deal was AUD 8.89 per share, but that several issues remained unresolved, including the allocation of risk between the consortium and Santos shareholders, regulatory approvals, and commitments to domestic gas supply.
Following the withdrawal, Santos shares dropped by as much as 13.6% on the Australian Securities Exchange. Observers said the fall reflected investor frustration and doubts about future takeover attempts.
This marks the third time in seven years that a takeover bid for Santos has failed. Previous attempts include Harbour Energy’s offer in 2018 and merger talks with Woodside Energy in 2024.
Analysts say the collapse of the deal raises questions about the firm’s valuation under current market conditions, regulatory risk in cross-border energy deals, and investor confidence.
