From Australia, Feb. 6: Santos, Woodside end $80bn merger talks

Kay Cashman

Petroleum News

As previously reported by Petroleum News, in Santos Ltd.'s fourth quarter report released on Jan. 25, Santos Managing Director and Chief Executive Officer Kevin Gallagher said that Santos continues to be "in early-stage discussions to evaluate the merits of a potential merger with Woodside. The parties have agreed to exchange information to assess the benefits for our shareholders. Santos continues to consider alternative options to accelerate value for shareholders. There is no certainty that any transaction will eventuate from these discussions," he noted.

On Feb. 6, The Australian Business Review reported that "Woodside and Santos have ended merger discussions after determining a transaction which would have created a $80bn global oil and gas behemoth was not in the best interest of shareholders."

In a news release dated. Feb. 7, Santos said: "Following an initial exchange of information, sufficient combination benefits were not identified to support a merger that would be in the best interests of Santos shareholders."

Santos said it "has a clear strategy to deliver long-term shareholder value. We have a strong balance sheet and continue to review options to unlock value for shareholders."

--KAY CASHMAN