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2mo ago

Regulators Weigh ADNOC’s $18.7 Billion Takeover Bid for Santos

The bid now awaits FIRB advice to Treasurer Jim Chalmers on domestic gas security conditions tied to foreign ownership.

Santos-operated Moomba gas plant is seen outside Moomba, South Australia May 17, 2012. REUTERS/Rebekah Kebede/File Photo
The logo of Australian oil and gas producer Santos Ltd is pictured at their Sydney office February 15, 2016. REUTERS/Jason Reed/File Photo
Logos of ADNOC are seen at Gastech, the world's biggest expo for the gas industry, in Chiba, Japan, April 4, 2017. REUTERS/Toru Hanai
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Overview

  • Santos’s board has recommended shareholders accept the A$8.89 per share all-cash offer from the ADNOC-led consortium.
  • The proposal is under review by the Foreign Investment Review Board before Treasurer Jim Chalmers makes a final approval decision.
  • Santos shares are trading below the bid price, signaling investor doubts over the deal’s regulatory prospects.
  • Analysts say ADNOC’s financial capacity could fast-track Santos’s undeveloped Narrabri and Beetaloo gas projects to help close an east coast supply gap.
  • Regulators may impose a domestic gas reservation policy on the consortium to protect Australia’s local energy security.