A consortium led by ADNOC, together with ADQ and Carlyle, has submitted a $18.7bn all-cash takeover proposal for Australian gas producer Santos, marking what could become the largest corporate buyout in Australian history.

The offer, equivalent to A$8.89 per share, represents a 28% premium to Santos’ last traded price and values the business at A$36.4bn ($24bn) including net debt. The bid is being made through ADNOC’s international investment arm, XRG, which was launched in late 2024 to build a leading global gas and LNG platform.

If successful, the consortium would secure ownership of Santos’ substantial LNG portfolio, including assets in Gladstone, Darwin, PNG, and Papua LNG – positions seen as central to ADNOC’s expansion strategy in Asia-Pacific. The bid also includes Santos’ stake in the Alaska-based Pikka oil project, expected to begin production in 2026.

“The proposed transaction is aligned with XRG’s strategy and ambition to build a leading integrated global gas and LNG business,” the consortium said.

Santos confirmed it had previously rejected two lower offers and that it would support the new bid if a binding agreement is reached and no superior offer emerges. The consortium is currently negotiating exclusive due diligence access.

The deal is subject to multiple regulatory approvals, including Australia’s FIRB, ASIC, and foreign investment bodies in PNG and the US. Analysts warn that control of critical energy infrastructure could complicate the path to approval.

Despite the risks, analysts believe few rivals would be willing to match the premium offered by ADNOC, whose ambitions are closely tied to long-term LNG demand in Asia.

Source: Reuters 

If you think we missed any important news, please do not hesitate to contact us at news@pe-insights.com. 

Can`t stop reading? Read more.