Overview

• XRG, the Abu Dhabi National Oil Company’s investment arm, with partners ADQ and Carlyle, withdrew its non-binding offer and will not lodge a binding bid for Santos.
• The decision came just days before a target date for a binding proposal, following an extension of exclusivity to complete due diligence.
• XRG said a combination of factors changed its assessment of the proposal, while maintaining a positive view of Santos and signaling interest in other Australian investments.
• Santos said the consortium would not agree to acceptable scheme terms, citing risk allocation, the obligation to secure regulatory approvals, and commitments to domestic gas supply.
• Media reports placed the proposed deal’s value between roughly $19 billion and nearly $30 billion, reflecting differing methodologies across outlets.