The bidding consortium spearheaded by Abu Dhabi National Oil Company’s XRG has been granted an extension for due diligence regarding its proposed $36.4 billion takeover of Santos. This extension has been mutually agreed upon by both parties, indicating continued progress in the potential transaction. Santos is a major Australian energy company involved in the exploration, development, production, and marketing of oil and gas. It supplies essential fuels to homes, businesses and major industries across Australia and Asia.
According to a recent statement, there is a “strong alignment between both parties on the strategic rationale for the potential transaction.” Both Santos and the XRG-led consortium have described the process as constructive and ongoing. The initial six-week due diligence period, which allowed the consortium to thoroughly examine Santos’ assets, concluded on Friday.
However, the XRG-led consortium has communicated its need for additional time to complete its assessment. The extension underscores the scale and complexity of the proposed acquisition, one of the largest ever considered in the Australian energy sector.
The outcome of this extended due diligence period will be closely watched by investors, as it will likely determine whether the $36.4 billion takeover bid proceeds. The acquisition could significantly reshape the Australian energy landscape.
