Billion Dollar Breakup: Why Aussie LNG Giants Woodside & Santos Said "I Do Not"?

Woodside Energy Group Ltd WDS disclosed that it ended acquisition talks with Santos Ltd  SSLZY.

Today, Woodside CEO Meg O’Neill stated that “for every opportunity Woodside assesses, it conducts thorough due diligence, and will only pursue a transaction that is value accretive for its shareholders.”

Also, Santos said in a statement, “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.”

Woodside didn’t offer a firm bid after almost two months of due diligence and negotiations undertaken by the parties, said Reuters, citing a source.

The acquisition could have created a global oil and gas giant worth A$ 80 billion ($52 billion) if it had gone through.

The buyout could have created a dominant force in the LNG market and positioned the combined entity to better negotiate with buyers and optimize its LNG operations. 

Also Read: Australia’s Woodside Pockets 5-Year LNG Supply Deal With Pilbara Minerals

Price Action: WDS shares are trading lower by 0.05% at $21.22 premarket on the last check Wednesday.