Daily Management Review

Australian oil and gas majors Woodside and Santos reject $52B merger


Two of Australia's biggest oil and gas corporations, Woodside and Santos, announced that their three-month merger talks have been called off.

Michael Coghlan
Michael Coghlan
According to a statement from Woodside, the first information exchange did not reveal enough advantages that would be in the best interests of Santos shareholders.

Additionally, Woodside declared that it was only considering transactions that would benefit shareholders.

The Financial Times notes that some investors have openly voiced their concerns that Woodside would have had to pay an excessive premium for a rival that has suffered recently.

There would essentially be no independent LNG producers left on the Australian market as a result of the merger, which has a potential worth of $52 billion, the newspaper writes.

source: ft.com