$30 Billion Bid for Santos (ASX:STO) Sparks Takeover Buzz from Abu Dhabi Consortium

June 16, 2025 10:51 AM AEST | By Team Kalkine Media

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$30 Billion Bid for Santos (ASX:STO) Sparks Takeover Buzz from Abu Dhabi Consortium — Image source: shutterstock

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Highlights

Santos (STO) receives $30B takeover approach

Offer values shares at 28% premium to last close

Headquarters in Adelaide set to be retained

Australian energy heavyweight Santos (ASX:STO) has found itself in the spotlight following a major $30 billion takeover approach from a consortium led by XRG, the investment arm of Abu Dhabi's national oil company. This proposal represents one of the most significant corporate moves in Australia’s energy sector in recent times.

The consortium includes Abu Dhabi Development Holding Company (ADQ) and global investment firm Carlyle. It has tabled what it describes as a “final non-binding indicative offer” to acquire 100% of Santos’ outstanding shares at a price of US$5.76 per share — approximately AUD 8.89. This marks a substantial 28% premium to Santos’ last traded price of AUD 6.96 on the ASX.

This latest offer isn’t the consortium’s first. Previous bids came in March at AUD 8 and AUD 8.60 per share respectively, though those remained behind closed doors. The renewed proposal and improved pricing signal firm interest in Santos’ strategic energy assets across Australia and beyond.

Despite its non-binding nature, the proposal is gaining traction. The Santos board has indicated its intention to unanimously recommend the offer to shareholders — a positive signal of alignment between the company’s leadership and the consortium’s direction. However, the bid remains subject to several standard procedures, including due diligence and regulatory clearances.

The consortium has also sought to reassure stakeholders by confirming its intention to maintain Santos’ headquarters in Adelaide. This move reflects a commitment to sustaining the company’s domestic operations and workforce, alongside its international projects.

Santos is one of Australia’s major oil and gas producers, and the bid underscores its value amid a shifting global energy landscape. With sovereign wealth and private capital flowing into energy infrastructure, the acquisition of Santos could provide the consortium with significant upstream capabilities and access to global energy markets.

While the deal is still in its preliminary stages, its size and scope suggest a potential shakeup in the region’s energy space — positioning Santos (STO) at the center of a transformative opportunity.

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