Santos Delays ADNOC-Led Takeover Decision

Australia's Santos has announced a delay in the completion of an $18.7 billion acquisition bid led by an international consortium spearheaded by Abu Dhabi's National Oil Company (ADNOC). The consortium, which includes investment firm XRG, Abu Dhabi Development Holding Company (ADQ), and private equity firm Carlyle, notified Santos of the need for at least an additional four weeks beyond the initial August 22 deadline to secure all necessary approvals. Despite ongoing collaborative discussions and extensive due diligence, the parties have not yet reached consensus on the terms of a binding scheme implementation agreement (SIA), making it improbable to sign an agreement before the newly extended deadline. The transaction, if successful, would involve significant operations across Australia and Papua New Guinea, but faces regulatory hurdles given Santos' critical role as an energy provider in Australia. The deal requires approvals from regulators in Australia, Papua New Guinea, and the U.S. Concurrently, Santos has postponed releasing its interim earnings report to August 25. This news led to a 3.5% drop in Santos' share price, marking a five-week low.