ADNOC, along with ADQ and Carlyle, has proposed an $18.7 billion cash takeover of Australian gas producer Santos, potentially marking the largest corporate buyout in Australia's history.

Target Information

A consortium led by the Abu Dhabi National Oil Company (ADNOC), along with ADQ and Carlyle, has extended an all-cash takeover proposal of $18.7 billion for Santos, an Australian gas producer. This acquisition endeavor could potentially become the largest corporate buyout in Australia’s history. The consortium's offer translates to a valuation of A$8.89 per share, which represents a 28% premium on Santos’ last traded price, valuing the company at approximately A$36.4 billion ($24 billion), including net debt.

The bid is facilitated through ADNOC's international investment arm, XRG, which was established recently to develop a leading global gas and liquefied natural gas (LNG) platform. Should the takeover prove successful, the consortium would gain ownership of Santos' significant LNG assets located in Gladstone, Darwin, and Papua New Guinea, which are considered vital to ADNOC's growth strategy in the Asia-Pacific region. Additionally, the proposal includes Santos' interest in the Pikka oil project based in Alaska, which is anticipated to commence production by 2026.

Industry Overview in Australia

Australia is a critical player in the global energy landscape, particularly in LNG production, being one of the world's largest exporters. The nation has benefited from significant investments in gas infrastru