Santos Ltd. shares surged more than 15% on Monday after receiving a non-binding $18.72 billion takeover proposal from a consortium led by Abu Dhabi’s National Oil Company (ADNOC).
It’s the sharpest single-day jump for the Australian oil and gas producer since April 2020, according to LSEG data.
The bid comes from ADNOC’s investment arm, XRG, alongside Abu Dhabi Development Holding Co. and global private equity firm Carlyle Group.
The group is offering A$8.89 ($5.76) per share in cash, a 27.7% premium to Santos’ closing price of A$6.96 on Friday.
Santos revealed that the offer follows two earlier non-binding and indicative proposals submitted on March 21 and March 28.
The company’s board stated it intends to “unanimously recommend” the proposal to shareholders, provided no superior offer emerges.
XRG, which oversees an enterprise valued at more than $80 billion, has been actively seeking opportunities in natural gas, chemicals, and lower-carbon energy projects.
Santos has struggled to close previous takeover deals. It previously rejected offers from U.S.-based Harbour Energy, and its merger talks with fellow Australian energy company Woodside Energy Group fell through over valuation disagreements.
Yet interest in Santos hasn’t faded. Its LNG portfolio remains a strong draw, especially among Middle Eastern investors seeking long-term energy plays.
The proposed acquisition would hand the consortium control of Gladstone LNG on Australia’s east coast, Darwin LNG in the north, and stakes in both PNG LNG and the undeveloped Papua LNG.
This move underscores a growing business appetite for gas assets amid the global energy transition, with ADNOC positioning itself to expand its influence in the Asia-Pacific region’s energy market.
If the deal advances, it would mark a pivotal shift for Santos, from takeover target to strategic centerpiece in a global energy expansion.
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