Santos Shares Soar 15% on $18.7B ADNOC-Led Takeover Bid

Shares of Australian oil and gas producer Santos surged over 15% following a non-binding takeover offer valued at approximately $18.7 billion led by Abu Dhabi National Oil Company (ADNOC) and the Carlyle Group. The consortium's cash offer of A$8.89 per share represents a premium of around 28% over Santos' recent closing price, prompting Santos' board to unanimously recommend shareholders vote in favor of the potential transaction in the absence of superior proposals. This marks the third bid from the consortium after earlier confidential proposals this year, with the deal giving the consortium control over key liquefied natural gas assets in Australia and Papua New Guinea. The takeover interest reflects growing global demand for natural gas, especially as a transitional energy source amid rising energy needs driven by AI data centers and geopolitical tensions affecting oil supply. Santos' shares reached their highest levels since August 2024, contributing to gains in Australian energy stocks amid escalating Israel-Iran tensions that raised concerns about Middle East oil export disruptions. The deal underscores the strategic significance of Australian gas resources and could become one of the largest energy sector acquisitions in the country in recent years.