Latest news with #AbuDhabi-led
Arabian Post
16 hours ago
- Business
- Arabian Post
Abu Dhabi Bid for Santos Sparks Energy Sovereignty Debate
Santos Ltd's board of directors has endorsed a US $18.7 billion cash offer from an Abu Dhabi-led consortium, pledging immediate relief for stretched gas markets but plunging Australia into a high-stakes national interest conflict. The bid, sponsored by ADNOC's investment arm XRG alongside ADQ and Carlyle, offers A$8.89 per share—a 28 per cent premium to Santos's market value—while assuming A$36.4 billion in enterprise debt. It marks the largest all‑cash takeover ever in Australia. Investors have reacted with caution: Santos shares rallied nearly 11 per cent upon news of the bid but remain significantly below the offer price, reflecting deep concern over regulatory approval. Analysts warn that the deal's fate now hinges on the Foreign Investment Review Board and Treasurer Jim Chalmers, whose approval will weigh economic gain against strategic control of critical energy infrastructure. ADVERTISEMENT Proponents emphasise that ADNOC's financial strength can catalyse development of Santos's undeveloped assets—including Narrabri and shale projects like Beetaloo—and help mitigate an anticipated east‑coast gas shortage by 2027. With ADNOC targeting 20–25 million tonnes per annum of LNG capacity by 2035, acquiring Santos's stakes in Gladstone, Darwin and PNG LNG represents a strategic alignment for both parties. However, a chorus of concern has emerged over the implications for domestic energy sovereignty. The high concentration of export‑oriented gas supply—over 70 per cent in Queensland—raises alarms that ADNOC might prioritise LNG sales over local consumption, deepening east‑coast supply pressures. RenewEconomy warns that 'if ADNOC's focus is primarily on LNG markets, it will likely seek to export as much gas as possible'. Australian Energy Producers, which counts Santos CEO Kevin Gallagher as a board member, has yet to publicly weigh in, but the Australian Energy Market Operator has flagged potential domestic shortfalls by late decade if projects like Barossa and Narrabri are delayed. Political figures are sharpening oversight. South Australia's energy minister, Tom Koutsantonis, invoked state power to oversee licence transfers, while Treasurer Chalmers cautioned that the deal 'would be a big decision' and pledged not to pre‑empt FIRB's findings. Historical precedents include the federal government blocking Shell's bid for Woodside in 2001 and the NSW Ausgrid sale in 2016—illustrating a willingness to restrict foreign control of strategic infrastructure. From Adelaide to Canberra, voices across politics and industry are watching keenly. South Australian Premier Peter Malinauskas stressed that the headquarters and local workforce must be retained; this position is reinforced by new state laws granting oversight over petroleum licence assignments. On the investor side, divergent assessments persist. UBS analysts see ADNOC's deep pockets as a positive, while others like Evans & Partners downgraded Santos stock, suggesting investors might prefer Woodside, citing superior oil market positioning. The bid aligns with Australia‑UAE economic ties following a free trade agreement, yet regulatory scrutiny is expected to be heightened due to the sovereign‑state nature of ADNOC. Approval would mark a milestone in Australia's economic evolution, yet rejection—or imposition of conditions like domestic supply carve‑outs—could serve as a policy catalyst in securing energy infrastructure for public benefit. This takeover bid places domestic energy security at the centre of policymaking, challenging Australia to find balance between foreign investment and safeguarding its energy future.
AU Financial Review
4 days ago
- Business
- AU Financial Review
Market debates whether Abu Dhabi will help or hinder Santos' ambitions
To some, Santos' prosperous Abu Dhabi-led suitors are the answer to a domestic energy security problem, with the cash to splash on gas developments from Narrabri in NSW to Beetaloo in the Northern Territory. To others, the $36.4 billion bid by a consortium led by the Abu Dhabi National Oil Company's XRG investment arm could mean less investment in local gas fields, which will be at the whim of an OPEC cartel member.
Gulf Insider
30-05-2025
- Business
- Gulf Insider
Dubai Real Estate Prices Likely To Face Double-Digit Fall After Years Of Boom, Fitch Says
Dubai's real estate market prices are likely to face a double-double-digit fall in the second half of the year and in 2026, ratings agency Fitch said in a report on Thursday, marking a sharp turn after years of a post-pandemic boom. A spike in deliveries in 2025 and 2026 to a planned 210,000 units, doubling from the previous three years, is likely to cause a record increase in supply and push prices down by no more than 15%, the agency said. The possible drop would follow a rise of around 60% in residential units prices between 2022 and the first quarter of this year in Dubai, where massive infrastructure spending, generous income tax policies and relaxed social and visa rules lured thousands of foreigners after the COVID-19 pandemic, including Russians amid war in Ukraine. Real estate plays a vital role for the economy of the emirate, the Gulf's hub for business and tourism, with sector transactions worth 761 billion dirhams ($207.22 billion) last year, rising 36% in volume, according to Dubai government data. In the past, Dubai suffered painful corrections akin to the property crash in 2009 which required a $20 billion Abu Dhabi-led bailout. The government has since taken measures to deleverage and strengthen the sector, and consolidated major state-owned real estate developers. It has also pursued an economic reboot anchored in what it hopes is sustainable growth, including a 10-year plan known as D33, to double output and become one of the world's top four financial centres. Fitch said on Thursday that banks and homebuilders can tolerate a decrease in prices. It noted that while real estate remains the largest component in UAE banks' lending books, banking sector exposure to firms operating in real estate had dropped to 14% of total gross loans at end of last year from 20% three years earlier. The attractiveness of properties in prime locations, which include palm tree-shaped artificial island Palm Jumeirah, together with delays in project completion would also help mitigate pricing pressure.
Reuters
29-05-2025
- Business
- Reuters
Dubai real estate prices likely to face double-digit fall after years of boom, Fitch says
DUBAI, May 29 (Reuters) - Dubai's real estate market prices are likely to face a double-double-digit fall in the second half of the year and in 2026, ratings agency Fitch said in a report on Thursday, marking a sharp turn after years of a post-pandemic boom. A spike in deliveries in 2025 and 2026 to a planned 210,000 units, doubling from the previous three years, is likely to cause a record increase in supply and push prices down by no more than 15%, the agency said. The possible drop would follow a rise of around 60% in residential units prices between 2022 and the first quarter of this year in Dubai, where massive infrastructure spending, generous income tax policies and relaxed social and visa rules lured thousands of foreigners after the COVID-19 pandemic, including Russians amid war in Ukraine. Real estate plays a vital role for the economy of the emirate, the Gulf's hub for business and tourism, with sector transactions worth 761 billion dirhams ($207.22 billion) last year, rising 36% in volume, according to Dubai government data. In the past, Dubai suffered painful corrections akin to the property crash in 2009 which required a $20 billion Abu Dhabi-led bailout. The government has since taken measures to deleverage and strengthen the sector, and consolidated major state-owned real estate developers. It has also pursued an economic reboot anchored in what it hopes is sustainable growth, including a 10-year plan known as D33, to double output and become one of the world's top four financial centres. Fitch said on Thursday that banks and homebuilders can tolerate a decrease in prices. It noted that while real estate remains the largest component in UAE banks' lending books, banking sector exposure to firms operating in real estate had dropped to 14% of total gross loans at end of last year from 20% three years earlier. The attractiveness of properties in prime locations, which include palm tree-shaped artificial island Palm Jumeirah, together with delays in project completion would also help mitigate pricing pressure. ($1 = 3.6724 UAE dirham)
Yahoo
15-05-2025
- Business
- Yahoo
UK to allow foreign states to own 15% stake in British newspapers
UK to allow foreign states to own 15% stake in British newspapers UK to allow foreign states to own 15% stake in British newspapers The UK government plans to allow foreign states to own up to a 15% stake in British newspapers and magazines under new media reforms. The proposed change, which was announced on Thursday, comes a year after the former Conservative government banned foreign newspaper or magazine ownership amid concerns over an Abu Dhabi-led takeover of the Telegraph, one of Britain's best-known papers. The Labour government, which came to power after a landslide election victory in July, argues that a 15% cap on state-owned investors will help UK news organisations to seek investment while limiting the risk of foreign state influence. As part of the reforms, the rules on media mergers will be expanded to include online news publications and magazines. Currently, they only apply to television, radio and print newspapers. ADVERTISEMENT 'Britain's free and independent press is a national asset like no other and it is right that we have strong measures in place to allow scrutiny of UK takeovers that might go against the public interest,' Culture Secretary Lisa Nandy said. 'We are fully upholding the need to safeguard our news media from foreign state control whilst recognising that news organisations must be able to raise vital funding,' she added. The changes, which can only be enacted after votes in the House of Commons and the House of Lords, could end two years of uncertainty at the Telegraph and the Sunday Telegraph. Related Backed by the Abu Dhabi royal family, the US private equity firm RedBird IMI effectively took control of both papers and the Spectator magazine in 2023 after partly repaying the debts of the titles' previous owners, the Barclay family. ADVERTISEMENT However, the last Conservative government blocked RedBird IMI's ownership by introducing the Digital Markets, Competition and Consumers Act 2024, which prevents foreign states or associated individuals from acquiring British newspapers. The UK government's new 15% cap on foreign ownership could permit the Telegraph sale to go ahead.
