Santos grants due diligence extension to ADNOC-led consortium for potential takeover

Australian energy company Santos has granted a two-week extension to a consortium led by a subsidiary of the Abu Dhabi National Oil Company (ADNOC) to finalise its due diligence for a potential takeover. The new exclusivity period will now run until August 22, 2025.

The XRG Consortium, which also includes Abu Dhabi Development Holding Company (ADQ) and Carlyle, has substantially completed its due diligence and has requested the extension to progress a binding scheme implementation agreement.

In its announcement, Santos stated that the consortium has confirmed it has not discovered anything to date that would cause it to withdraw its non-binding indicative proposal of AU$8.89 ($5.76) per share. The consortium also confirmed its commitment to working constructively with Santos to complete the process promptly.

The exclusivity restrictions, which have been in place since the two parties signed a process and exclusivity deed on June 27, 2025, will continue during the extension period.

Santos noted that a fiduciary exception, which enables the company to deal with potentially superior proposals from competing acquirers, has applied since July 25 and will continue to apply. Santos advised its shareholders that they do not need to take any action and that there is no certainty a binding transaction will proceed.