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The Middle Eastern oil giant vying to take over Australian fossil fuel producer Santos has walked away from the proposed $30 billion deal, which would have been the biggest cash takeover in the country’s history.
Abu Dhabi National Oil Company’s foreign investment arm, XRG, and its bidding partners on Thursday night said they had withdrawn their blockbuster bid to acquire Santos, the second-largest Australian oil and gas company, ending months of negotiations.
Abu Dhabi’s national oil company has abandoned a $30 billion takeover bid for Australia’s Santos.Credit: Monique Westermann
In a surprise statement just two days before the deadline for a binding deal, the consortium said it had encountered issues that had altered its original assessment of Santos’s value.
“The XRG-led consortium announced today that it has withdrawn its indicative offer and will not proceed with a binding offer for Santos,” the company said in a statement.
“While the consortium maintains a positive view of the Santos business, a combination of factors, when considered collectively, have impacted the consortium’s assessment of its indicative offer.”
The Middle Eastern oil giant had expressed an eagerness to acquire Santos’s assets in Australia and overseas in a push to expand its production of liquefied natural gas (LNG), and gain exposure to growing Asian gas markets.
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