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07 Feb, 2024 07:27 07 Feb, 2024 07:27

Woodside and Santos call off $52bn merger talks

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Woodside Energy GroupSharecast graphic / Josh White

Woodside Energy, the Australian oil and gas group with secondary listings in London and New York, has announced it has called off merger talks with smaller peer Santos that would have created an energy giant worth $52bn.

The companies confirmed in December that they were in talks around a potential tie-up, but said on Wednesday they had now "ceased discussions".

Woodside never launched a firm offer for Santos – which is less than half its size by market cap – as the parties are thought to have disagreed on a valuation level.

In a statement, Woodside chief executive Meg O'Neill said: "While the discussions with Santos did not result in a transaction, Woodside considers that the global LNG sector provides significant potential for value creation."

Woodside said it continuously assesses both organic and inorganic growth opportunities, but will "only pursue a transaction that is value accretive for its shareholders".

"Woodside's world-class global portfolio, growth pipeline and strong balance sheet underpin our attractive investment proposition for Australian and global investors," O'Neill said.

Shares in ASX-listed Santos dropped nearly 6% on the news, with the company releasing a statement saying: "Following an initial exchange of information, sufficient combination benefits were not identified to support a merger that would be in the best interests of Santos shareholders."

Woodside's shares however were up 0.5% in Sydney.


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Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.

The value of investments can fall and you may get back less than you invested.