Santos-ADNOC takeover deal unlikely by August 22 deadline

Australian energy company Santos has announced that it does not expect to enter into a binding takeover agreement with a consortium led by a subsidiary of the Abu Dhabi National Oil Company (ADNOC) by the August 22 exclusivity deadline. Discussions between the two parties remain ongoing.

The consortium, which also includes Abu Dhabi Development Holding Company and Carlyle, has substantially completed its due diligence and has not found anything that would cause it to withdraw its non-binding proposal of A$8.89 ($5.74) per share.

However, it has informed Santos that even if the terms of a binding agreement were settled, it would still not be in a position to sign, as it is yet to obtain requisite final internal approvals. The consortium has indicated these approvals could take four weeks or longer to secure.

The two parties have been in an exclusivity period since June 27, which was recently extended to August 22. Santos stated that while discussions have been collaborative, the parties have not yet reached an agreement on acceptable terms for a binding deal.

In a related announcement, Santos has deferred the release of its results for the half-year ended June 30, 2025. The results will now be released on Monday, August 25, to align with the conclusion of the exclusivity period, at which time the company will provide a further update on the status of the discussions.