Adnoc moves on Australia's Santos in $19bn bid
By Abigail Townsend
Date: Monday 16 Jun 2025
(Sharecast News) - The Abu Dhabi National Oil Company has approached Australian gas producer Santos Limited about a potential $19bn takeover, it was confirmed on Monday.
Santos said a consortium led by XRG, a subsidiary of Adnoc, had made a non-binding indicative offer of $5.76 per share. Other members of the consortium include the Abu Dhabi Development Holding Company and US private equity firm Carlyle.
The offer, a 28% premium to Santos's closing price on Friday, values the Adelaide-based business at $18.7bn. It also follows two previous indicative proposals from the same consortium, which were made in March, Santos confirmed.
The consortium is now carrying out due diligence but subject to reaching acceptable terms, Santos said the board intended to unanimously recommend this latest offer.
Santos's Sydney-listed shares soared on the news, closing 11% higher on Monday.
XRG has long been on the hunt for deals in the natural gas, chemicals and lower-carbon sectors. Santos would give the consortium control of two major Australian liquified natural gas operations, on the east coast and in Darwin, as well as stakes in other projects.
Santos, meanwhile, had been looking to merge with Australian rival Woodside Energy Group, but the deal collapsed last year after both sides failed to agree a valuation.
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