Abu Dhabi's ADNOC Launches $18.7bn Takeover Bid for Santos

ADNOC has launched an $18.7bn takeover bid for Australian oil and gas company Santos. The consortium led by ADNOC's subsidiary XRG has proposed a $5.76 per share cash offer for 100% of Santos stock. The offer comes after a series of failed attempts by Santos to find a buyer for its oil and gas assets. The deal is subject to regulatory approvals and is expected to be completed by mid-2023.

Santos Ltd (ASX: STO) shares have experienced a significant surge following a takeover proposal from a consortium led by Abu Dhabi National Oil Company (ADNOC). The offer, valued at A$30 billion, represents a substantial premium over the company's recent trading averages and has sparked interest among investors.

The consortium, known as the XRG Consortium, is offering to acquire all outstanding Santos shares for US$5.76 per share, which equates to approximately A$8.89. This offer, announced on June 15, 2025, is a 28% premium to Santos' June 13 closing price [1].

The consortium's proposal is the latest in a series of attempts to secure a buyer for Santos' oil and gas assets. Previous offers, made in March 2025, were valued at A$8.00 and A$8.60 per share, respectively. The latest offer is the highest yet and is described as the consortium's "final non-binding indicative offer" [2].

The Santos board has agreed to grant the XRG Consortium due diligence access to progress the offer further. The board believes that it is in the best interests of shareholders to allow confirmatory due diligence and negotiation of a binding Scheme Implementation Agreement (SIA). The deal remains subject to regulatory approvals from authorities in Australia, the U.S., and Papua New Guinea, and there is no certainty that the proposal will result in a transaction [1].

Investors should note that the deal is expected to be completed by mid-2023, but the exact timeline is subject to regulatory approvals and the successful completion of due diligence. Goldman Sachs and JB North & Co are acting as financial advisers to Santos, while Rothschild & Co. is serving as an independent board adviser, and Herbert Smith Freehills Kramer is acting as legal adviser [2].

Santos shares have seen a 9% increase over the past 12 months, and today's gain has further boosted the stock's performance. The offer from the XRG Consortium, if successful, would significantly impact the Australian energy sector and could have broader implications for the global oil and gas market.

References:
[1] https://www.fool.com.au/2025/06/16/santos-shares-rocket-on-30b-takeover-offer/
[2] https://www.hartenergy.com/exclusives/adnoc-carlyle-offer-188b-australias-santos-ltd-213217