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Santos Shares Surge on $18.7 Billion ADNOC-Led Takeover Offer

Shares of Santos Ltd, one of Australia’s leading oil and gas producers, soared over 15.2% on Monday after the company received a massive $18.72 billion (AUD 27 billion) takeover proposal from a consortium led by Abu Dhabi’s National Oil Company (ADNOC) investment arm XRG Partners.

According to LSEG data, this surge marks Santos' biggest single-day share price jump since April 2020, highlighting investor excitement around the potential acquisition.

Who’s Behind the Bid?

The consortium includes:

• XRG Partners, ADNOC’s dedicated investment unit with an enterprise value exceeding $80 billion.
• Abu Dhabi Development Holding Co, a government-linked investment firm focused on sustainable infrastructure.
• The Carlyle Group, a global private equity powerhouse with extensive experience in energy investments.

This powerful alliance is targeting Santos as part of its strategic push into natural gas, chemicals, and low-carbon energy sectors.

Details of the Offer

The consortium has offered a cash bid of AUD 8.89 ($5.76 USD) per Santos share, representing an enticing 27.73% premium over the stock’s closing price of AUD 6.96 ($4.52 USD) last Friday.

Santos’ board has responded positively, declaring its intent to unanimously recommend shareholders accept the offer, provided no superior proposal emerges.

This offer follows two earlier non-binding bids made by the same consortium in March, on the 21st and 28th, reflecting a growing commitment to secure the deal.

Why This Deal Matters

Acquiring Santos would give the ADNOC-led consortium control over key Australian liquefied natural gas (LNG) assets, including:

• Gladstone LNG on Australia’s east coast.
• Darwin LNG in the northern territory.
• Stakes in PNG LNG and the undeveloped Papua LNG project.

These assets provide strategic access to Asia-Pacific’s booming energy markets, particularly the growing demand for cleaner-burning natural gas.

Santos’ Past Takeover History

Santos has long been on the radar of global energy investors but has faced setbacks in recent years:

• The company rejected a takeover offer from U.S.-based Harbour Energy.
• Its attempted merger with Woodside Energy Group collapsed due to valuation disagreements.

Despite these hurdles, Santos remains highly attractive due to its robust LNG portfolio and strong positioning in a rapidly evolving energy transition landscape.

Strategic Importance for ADNOC and Partners

For ADNOC and its partners, this acquisition is part of a broader strategy to diversify and expand in the natural gas and lower-carbon energy sectors. XRG, with its significant investment capacity, has been aggressively pursuing deals that align with global energy trends focused on sustainability.

The consortium’s deep pockets and combined expertise position them well to accelerate Santos' growth, leverage LNG infrastructure, and support the transition toward cleaner energy sources.

What’s Next?

Shareholders are expected to vote on the proposed transaction soon. If approved, this deal could mark one of the largest energy sector acquisitions in Australia in recent years and set the stage for ADNOC’s deeper footprint in the Asia-Pacific energy market.

With global energy dynamics shifting rapidly amid climate change pressures and geopolitical realignments, this takeover could reshape both regional and international LNG supply chains.