Santos shares slump as Adnoc pulls $19bn takeover

(Sharecast News) - Shares in Australian natural gas group Santos plunged on Thursday after Abu Dhabi's state oil company walked away from its $18.7bn offer. Adnoc and private equity outfit Carlyle joined forces to table what would have been Australia's largest takeover but pulled their offer late on Wednesday citing a "combination of factors".

The proposed deal required a range of regulatory approvals along with the Foreign Investment Review Board, which provides advice to the country's Treasurer Jim Chalmers.

However, despite support from the company's board, it had come under fire from Australian trades unions.

Santos shares fell 12% on the Australian Stock Exchange.

"The XRG consortium would not agree to acceptable terms which protected the value of the potential transaction for Santos shareholders, having regard to the likely extended timeframe to completion and the regulatory risk associated with the transaction," Santos said in a statement.

Santos had previously failed to seal takeover deals with US company Harbour Energy in 2018 and last year with domestic rival Woodside Energy.

Company chairman Keith Spence moved to allay investor concerns, saying the miner "has a clear strategy, strong leadership and high-quality growth opportunities across our global portfolio".

"The board is confident these strengths will deliver long-term value for shareholders."

Reporting by Frank Prenesti for Sharecast.com