ADNOC leads $18.7 billion proposal to buy Australia’s Santos in LNG push

$30 Billion AUD: ADNOC will buy Australia’s Santos – Big Aquisiton and Many others On The Way?

Australia’s Santos has received a non‑binding takeover bid worth approximately $18.7 billion (A$8.89 per share, a 28 pc premium) from a consortium led by Abu Dhabi’s ADNOC, alongside ADQ and Carlyle . The Santos board is backing the proposal in principle, pending a binding scheme implementation agreement and in the absence of a superior offer .

The bid follows two earlier approaches in March at A$8.00 and A$8.60 per share . ADNOC’s aim is to expand its global gas and LNG footprint through this strategic acquisition .

A range of regulatory approvals will be required – including from Australia’s FIRB, ASIC, relevant PNG authorities and the U.S. CFIUS – with FIRB approval expected to be a key hurdle given Santos’s control over critical energy infrastructure .

The bid arrives amid elevated oil prices driven by Middle East tensions and follows analyst warnings that competing offers are unlikely unless they match ADNOC’s premium .

Santos posted a roughly 16 pc drop in underlying profit and slashed its dividend by 41 pc in 2024, amid a strategic pivot away from a previously mooted A$80 billion merger with Woodside