Abu Dhabi state oil firm makes US$18.7 billion bid for Australia's Santos
SYDNEY: Abu Dhabi's state-owned oil company is leading a takeover bid for Australian energy group Santos, valuing it at US$18.7 billion, the two firms said Monday.
Santos' board said it plans to unanimously recommend the Abu Dhabi National Oil Company's offer to shareholders if it can agree on the takeover terms.
Adelaide-based Santos has operations in Australia, Papua New Guinea, East Timor and the United States, and is a major supplier of liquefied natural gas in Australia and Asia.
The Abu Dhabi National Oil Company offered US$5.76 a share in a bid for all outstanding stock, valuing the entire company at US$18.7 billion.
The price per share is 28 per cent higher than Santos' closing level on Friday.
It was the "final, non-binding" offer from the Middle East oil company, which had previously offered two, lower confidential bids in March, Santos said.
The firm's stock was trading nearly 12 per cent higher early in afternoon trade on the Australian Securities Exchange.
The Abu Dhabi-based, state-owned energy firm made its bid via a consortium led by its own subsidiary, XRG.
Other members of the consortium include Abu Dhabi Development Holding Company and global investment firm Carlyle.
In a statement, XRG said it aimed to build on Santos' legacy as a trusted energy producer, "strengthening domestic and international energy security".
"The proposed transaction is aligned with XRG's strategy and ambition to build a leading integrated global gas and LNG business," it said.
Santos' board said it intended to "unanimously recommend" that shareholders vote in favour of the deal if it can agree on terms and there is no better offer.
Last year, Santos and rival Australian energy firm Woodside Energy abandoned talks to create one of the world's largest natural gas exporters.
Santos has been a rumoured takeover target for more than two years, said a report by E&P Financial Group.
The timing now felt "opportune" for a takeover offer, it said, with the risks weighing in favour of higher energy prices and Santos having completed some major investment projects.
E&P Financial said it expected the Santos bid to intensify focus on the value of liquefied natural gas assets, citing media reports that the Abu Dhabi National Oil Company was also interested in BP's LNG and gas operations.
Santos said the "indicative proposal" by its Abu Dhabi suitor was subject to due diligence, agreement on terms, and approval by regulatory authorities in Australia, Papua New Guinea and the United States.
The Middle East-led consortium said its offer would leave Santos' headquarters in Adelaide.
It vowed to work with existing Santos management to accelerate growth and support local jobs.
The group said it planned to invest in Santos' gas and liquefied natural gas business to provide "reliable and affordable low carbon solutions to customers in Australia, the Asia Pacific and beyond".
XRG said it would ensure Santos makes investments in carbon capture and storage projects, low carbon fuels and "other decarbonisation initiatives".
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
Thailand eyes greater share of booming global halal market worth US$3.1 trillion by 2027
BANGKOK (The Nation Thailand/ANN): Thailand's Commerce Ministry is positioning the kingdom to capture a greater share of the rapidly expanding global halal food market, which is projected to reach US$3.1 trillion by 2027, as the nation seeks to capitalise on what officials describe as a "golden opportunity". The global halal market, once considered niche, has evolved into a mainstream sector driven by a burgeoning Muslim population and increasing per capita spending amongst Muslim consumers worldwide. United Nations statistics for 2024 show Muslims account for 1.907 billion people, or 23.5% of the world's total population of 8.119 billion. This figure is projected to surge to 2.761 billion by 2050, representing nearly 30% of humanity and underscoring the immense potential of the halal market. According to Salaam Gateway, a leading Islamic economy research institute, the global halal product market was valued at $2.35 trillion in 2024. Food and beverages dominate this expansive market, accounting for US$1.38 trillion—nearly 59% of total halal market value. Other significant sectors include fashion, media and recreation, tourism, pharmaceuticals, and cosmetics. By 2027, halal food and beverages alone are expected to reach US$1.89 trillion. Poonpong Naiyanapakorn, Director General of the Trade Policy and Strategy Office at the Commerce Ministry, highlighted Thailand's strong position in the sector. In 2024, Thai food exports to Organisation of Islamic Cooperation (OIC) countries reached $7.1313 billion, marking robust 6.3% growth. "This solidifies Thailand's presence in the OIC market and signals a golden opportunity for Thai entrepreneurs to capitalise on surging global demand for halal products in 2025 and beyond," Poonpong said. He emphasised that halal food's appeal extends beyond Muslim consumers due to its adherence to strict Islamic production principles, ensuring cleanliness and hygiene. This perception of safety and quality is attracting a wider consumer base, fuelling continuous growth in demand, particularly within OIC nations. Globally, halal food and beverage exports to OIC countries totalled $247.362 billion in 2024, up 6.9% from 2023. Whilst major exporters include Brazil, India, China, Turkey, and the United States, Thailand currently ranks as the 10th largest food exporter to the OIC market. Key importers of halal food and beverages within the OIC include Indonesia, the United Arab Emirates, Malaysia, Saudi Arabia, and Turkey. For Thailand, halal food exports represent a crucial economic and trade strategy. Indonesia, Malaysia, Iraq, the UAE, and Saudi Arabia collectively form Thailand's largest markets, accounting for 68.5% of its OIC food exports. Key products include rice, tinned tuna, sugar, pet food, and seasonings. Thailand maintains a competitive edge through its product quality, food processing capabilities, and credible halal certification system. OIC countries, particularly Saudi Arabia, the UAE, and Qatar, represent high-potential markets with substantial average per capita purchasing power and demand for internationally standardised halal food. To strengthen its position and accelerate market expansion, Thailand must uphold its reputation as a producer of high-quality halal food, continuously develop product standards, and engage in proactive marketing within the OIC bloc. - The Nation Thailand/ANN
The Star
2 hours ago
- The Star
Indonesia's Prabowo says he wants more Russian involvement in his country's economy
Indonesia's President Prabowo Subianto speaks during a plenary session of the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia, June 20, 2025. -- REUTERS/Anton Vaganov ST PETERSBURG (Reuters): Indonesia wants to see more Russian involvement in its economy, President Prabowo Subianto said on Friday, a day after signing a declaration with President Vladimir Putin on creating a strategic partnership. "We know Russian corporations and we would like to see Russia participate more in our economy," Prabowo said in a speech to the St Petersburg International Economic Forum. Indonesia is a non-aligned country that values the leadership of Russia and China, Prabowo said, adding that he believed many countries in the Global South would agree. He said Indonesia was moving ahead of target towards its goal of self-sufficiency in food, and would be a net exporter of rice and corn within a few years. Indonesia also expects to sign a free trade agreement with the Russian-led Eurasian Economic Union (EAEU) this year in a move likely to boost demand for its commodity exports, its senior economic minister said. Coordinating Minister for Economic Affairs Airlangga Hartarto said the agreement would open up new opportunities for commodities including crude palm oil, coffee and natural rubber. Both parties announced on Thursday they had completed substantive talks for the agreement.
The Star
5 hours ago
- The Star
China urges US to ‘look at the whole picture' on tariffs to see true trade ties
The envoys of the world's two leading powers painted starkly different pictures of US-China ties, each offering a competing assessment of the state of their economic relations – as a recently agreed framework to ease trade tensions hung in limbo. Speaking at the US-China Business Council in Washington on Wednesday, Chinese ambassador Xie Feng called the trade relationship 'generally balanced' and tariffs on Chinese imports 'still unreasonably high', warning that the US goods deficit would not shrink while export controls, visa denials, and barriers to Chinese firms persist. 'We are willing to buy more from America,' Xie said, adding that 'unfortunately' the US had imposed 'strict restrictions on the exports of its most competitive products, such as semiconductors, and shut the door on Chinese enterprises, buyers, tourists and students who want to invest and spend in the US'. 'If one is reluctant to sell others what they want, how can it ever get its deficit reduced by exporting only products like soybeans and beef?' Since 2022, the US has steadily tightened restrictions on China's access to American technology over concerns it could fuel military advancements. These curbs intensified under US President Donald Trump's second term. However, earlier this month, the US agreed to ease some restrictions and allow Chinese students unhindered access to American universities in exchange for increased exports of critical minerals from China. Talks between the two sides in London produced a framework to implement the trade consensus reached in May in Geneva regarding Trump's new tariffs on Chinese imports – now reduced from 125 per cent to 55 per cent. Xie said the current US tariffs on China were 'still unreasonably high, will severely constrain and undercut bilateral trade and should be removed completely'. He added that it was 'unrealistic to try to block the flow of capital, technology and talents in a globalised world, if any country builds up barriers, these resources will naturally flow elsewhere'. Since June last year, the China-US trade has dropped by 8 per cent, while China's trade with the Association of Southeast Asian Nations and EU countries grew by 9 per cent and 3 per cent, respectively compared to the same period last year. Meanwhile, David Perdue, America's newly posted ambassador to Beijing, said that trade should be a means by which sovereign nations provide benefits to their citizens, 'not an ideological goal to be pursued in favour of transforming the world'. He added that Trump's vision was to have a trading relationship with China based on reciprocity, fairness and respect, 'one of which the United States puts the American people first, just as China does for its own people'. 'Our mission in China is to do everything we can to make that vision happen and to make America safer, stronger and more prosperous,' Perdue emphasised, blaming unfettered globalisation for making US business 'overly dependent' on China for components, inputs, intermediate goods and even entire supply chains. 'Our economy cannot be so dependent on foreign supply chains that can be severed at any moment,' he said. Addressing US businesses' concerns about losing the Chinese market due to strained bilateral relations, Perdue said that the administration understands the 'risk of change' and 'we will be there to support you and protect you from unfair practices'. However, Xie urged the US to 'look at the whole picture' to see that 'the benefits our two countries have taken from bilateral trade are generally balanced'. 'Any selective reading of the statistics would be misleading,' he added. Xie said that focusing only on goods trade overlooked the US surplus in services, American firms' strong revenues in China, the heavy environmental and resource costs China has borne, and the fact that the 'Chinese people have chosen to spend much of the trade gains buying a large amount of US Treasury bonds'. After Japan and Britain, China is the third-largest holder of US Treasuries – government debt securities used to finance federal spending. In December last year, China's holdings fell to US$759 billion, the lowest level since February 2009, when they stood at US$744.2 billion. By March, China had slightly reduced its holdings again, to US$765.4 billion. The senior officials' remarks came weeks after the latest US-China trade talks in London. The meeting was believed to focus on semiconductors and critical minerals, areas in which Washington and Beijing hold significant leverage over each other, respectively. Yet neither Beijing nor Washington has released an official readout of the dialogue since the negotiations ended, hinting at considerable uncertainty. Delegations from both sides said the trade agreement would require approval from their leaders, US President Donald Trump and Chinese President Xi Jinping. Shortly after the negotiations, Trump on social media said a deal with Beijing was 'done', adding that China would supply full magnets and any necessary rare earths 'up front'. Beijing has yet to issue a comprehensive response regarding its take on the talks, nor has Xi commented on them publicly. Meanwhile, US investor sentiment towards China has declined sharply. According to a survey last month by the China General Chamber of Commerce-USA, nearly half of the more than 100 Chinese companies who responded said they planned to reduce their investment in the US. The shift was also evident last month at the Commerce Department-backed SelectUSA Investment Summit, where only about 50 Chinese delegates attended, down from roughly 180 in 2018. Xie's remarks also came against the backdrop of escalating tensions between Israel and Iran. The Jewish state last week launched air strikes on the Islamic Republic, targeting Iranian nuclear facilities amid ongoing nuclear talks between Washington and Tehran. Israel's strikes have led to the deaths of multiple Iranian army heads and nuclear professionals. In retaliation, Iran carried out air strikes against Israel, causing casualties in Tel Aviv. Trump has issued ambiguous messages about whether the US would join Israel in striking Iran, a prospect that has stirred divisions in Washington and among his own supporters. On social media, Trump claimed the US knew the exact location of Iranian Supreme Leader Ali Khamenei, hinting at a possible assassination and calling on Tehran to surrender unconditionally. Tehran responded that it would not surrender. In China, Xi affirmed Beijing's willingness to mediate the crisis in a development anticipated by many as the country seeks greater visibility and sway in the Middle East. Foreign Minister Wang Yi has reached out to regional stakeholders, including his counterparts in Israel, Iran, Egypt and Oman. Wang has called for peace and condemned Israel's attacks. -- SOUTH CHINA MORNING POST
