Woodside: A Tempting M&A Target for Global Oil Majors

Deal News | Apr 07, 2025 | EIN

Woodside, Australia's 15th largest stock, is poised as a potential acquisition target due to favorable M&A conditions, its recent strategic moves, and regulatory climate in Australia. Previously, a merger between Woodside and Santos had failed, yet current market conditions make Woodside a likely target for global heavyweights like TotalEnergies and Chevron. Chevron recently shifted positions with Woodside in a billion-dollar asset swap concerning the North West Shelf and Wheatstone LNG project, with broader implications for the LNG industry. Regulatory challenges persist, notably with environmental approvals, which has prompted companies such as Shell and Chevron to hesitate over major projects like the Browse venture. Woodside's market cap of approximately $38 billion marks it as a substantial acquisition under ASX standards. Additionally, Woodside has been repositioning its investments, including a partial sell-down of its stake in Louisiana's LNG terminal, which enhances its attractiveness to potential acquirers.

Sectors

Oil and Gas Industry
Merger and Acquisition Advisory

Geography

Australia – Australia is the primary geography because Woodside is a major Australian oil and gas company, and its regulatory environment is a significant factor in M&A considerations.
United States – The U.S. is relevant due to Chevron's involvement in asset swaps with Woodside and Woodside's investment in the Louisiana LNG terminal.
France – France is relevant because TotalEnergies, a prospective acquirer of Woodside, is based there.

Industry

Oil and Gas Industry – The article discusses the potential acquisition of Woodside by global oil companies, highlighting the role this sector plays in the M&A narrative and the regulatory challenges in the LNG sector.
Merger and Acquisition Advisory – The article is centered on mergers and acquisitions, particularly how Woodside is seen as a potential acquisition target, making M&A advisory services relevant.

Financials

$38 billion – Woodside's market capitalization, indicating its scale as a potential acquisition target.
US$400 million – Cash paid by Chevron to Woodside in a recent asset swap.
US$14.85 billion to US$15.84 billion – Estimated cost for the first stage of Woodside's Louisiana LNG project.

Participants

Name	Role	Type	Description
Woodside	Target Company	Company	Woodside is Australia's 15th largest company and a major player in the oil and gas industry, now seen as a potential acquisition target.
Chevron	Potential Acquirer	Company	Chevron is a major U.S.-based oil company involved in recent asset swaps with Woodside, potentially interested in acquiring Woodside.
TotalEnergies	Potential Acquirer	Company	TotalEnergies is a France-based multinational oil and gas company potentially interested in acquiring Woodside.