Rystad Energy has reported that a consortium led by Abu Dhabi National Oil Company (ADNOC Group) has launched a non-binding US$18.7 billion (€16 billion) bid to acquire Australian LNG producer Santos at A$8.89 (€5.00) per share.
While the offer could mark a turning point for foreign investment and M&A appetite in Australia’s energy sector, it faces significant regulatory and political headwinds.
The consortium, comprising ADNOC’s LNG investment arm XRG Abu Dhabi sovereign investor ADQ, and global private equity firm Carlyle, aims to take full control of the Adelaide-based company. If successful, the deal would significantly advance ADNOC’s ambition to reach up to 25 million tonnes per annum (Mtpa) of LNG capacity by 2035, providing direct exposure to high-demand Asian markets.
The strategic logic is compelling for both sides, but regulatory scrutiny, political sensitivities, and project-level risks loom large.
