Abu Dhabi National Oil Company’s international has withdrawn its proposed $US18.7 billion ($A28 billion) takeover offer for Australian gas producer Santos.
ADNOC’s foreign investment arm XRG alongside Abu Dhabi sovereign fund ADQ and private equity firm Carlyle, will not make a binding offer for Santos, XRG said in a statement, capping a months-long takeover saga.
“The XRG-led consortium announced today that it has withdrawn its indicative offer and will not proceed with a binding offer for Santos,” the company said in a statement.
“While the consortium maintains a positive view of the Santos business, a combination of factors, when considered collectively, have impacted the consortium’s assessment of its indicative offer.”
“While disappointed not to move forward, XRG, and its consortium partners, are responsible, disciplined investors with a clear focus on creating value for our shareholders and driving long-term growth.
“The consortium extends its appreciation to the Santos management team for their assistance in the process, as well as all levels of government and other stakeholders for their positive and constructive engagement. This reinforced our confidence in Australia’s energy and investment environment, as well as the other locations that Santos operates.”
Santos said last month that there was no certainty the talks would result in a binding takeover agreement for what would be the largest all-cash takeover in Australian history.
The collapse of the deal comes about 20 months after merger talks between Santos and larger rival Woodside ended with no deal being agreed.
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