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Middle East Oil Giant Abandons $30 Billion Bid for Australia’s Santos
The consortium withdrew due to concerns over Santos's valuation, capital gains tax inflexibility, disclosure timing, and new environmental risk reports, ending months of negotiations.
- On Thursday, the XRG-led consortium announced it had withdrawn its indicative offer and will not proceed to a binding takeover of Santos Ltd., headquartered in Adelaide, Australia, abandoning a proposed $30 billion takeover that would have been Australia's biggest cash buyout.
- The XRG-led consortium cited a 'combination of factors' and reports from CNBC about concerns over value, tax, disclosure timeliness, and communication breakdowns that derailed the deal.
- The consortium, which includes Abu Dhabi sovereign wealth fund ADQ and investment firm Carlyle, had earlier made a $19 billion indicative offer and sought Santos's assets to boost LNG production and access Asian gas markets.
- Santos said it expects to enter an agreement on or before September 19 after a four-week extension, with its board expressing concern about delays; sources stressed the withdrawal was 'purely commercial,' not regulatory or union-driven.
- On Thursday night the XRG-led consortium pulled out two days before the binding deadline, but it remains expected to explore opportunities in Australia's energy sector.
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Why $30 billion sale of Australian company fell through
A Middle Eastern consortium has pulled the plug on a $36.4 billion offer to buy Australian oil and gas giant Santos.The decision was announced by XRG, an investment company which is also a vehicle for the Abu Dhabi National Oil Company."A combination of factors, when considered collectively, have impacted the consortium's assessment of its indicative offer," a statement on the company's website read.READ MORE: Trump fixated on 'so healthy, so be…
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Coverage Details
Total News Sources21
Leaning Left5Leaning Right4Center2Last UpdatedBias Distribution45% Left
Bias Distribution
- 45% of the sources lean Left
45% Left
L 45%
C 18%
R 36%
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