Woodside and Santos Mega-Merger: Woodside Energy and Santos are engaged in preliminary discussions over an A$80 billion ($52 billion) mega-merger to create a global oil and gas giant, spanning assets from Australia to Alaska, the Gulf of Mexico, Papua New Guinea, Senegal, and Trinidad and Tobago. While no fixed due diligence period or timetable is set, sources suggest an agreement may not be announced until at least February.
This potential deal comes amidst a broader trend of consolidation in the global energy sector, with oil majors like Exxon Mobil and Chevron making significant acquisitions. Woodside’s proposed acquisition of Santos would add considerable scale, providing advantages in terms of funding and exposure to international investors.
Also Read: Australian Energy Giants Woodside and Santos Are Considering a Massive $52 Billion Merger
Investors are closely watching the talks, with Santos and Woodside advisers reaching out to shareholders for their perspective on the potential deal. Woodside’s previous acquisition of BHP Group‘s oil and gas business less than 18 months ago underscores the company’s appetite for strategic growth. The proposed mega-merger aligns with industry consolidation trends, making it challenging for Woodside to find suitable acquisition targets elsewhere.
While Woodside’s market capitalization stands at A$56.91 billion and Santos at A$22.1 billion, discussions are still in the early stages, with only about 5% progress made so far. The holiday season, coupled with Australians taking vacations in December and January, may impact the speed of negotiations. The potential merger presents an opportunity for Woodside to enhance its position in the global energy landscape, subject to successful negotiations and regulatory approvals.
Our Reader’s Queries
What happened to Woodside Energy Group?
In May 2022, Woodside shareholders overwhelmingly approved the merger with BHP’s oil and gas assets. By June 2022, the merger was finalized and the newly combined entity was listed on both the New York Stock Exchange and the London Stock Exchange.
Why did BHP merge with Woodside?
On June 1, 2022, Woodside and BHP Petroleum joined forces to form a powerful independent energy company. This merger has resulted in a global entity that boasts impressive scale, diversity, and resilience. The new company is well-equipped to create value for shareholders and navigate the ever-evolving energy landscape.
How much did BHP and Woodside merger cost?
Following the completion of its $63 billion merger with BHP Petroleum, Woodside Energy is set to receive a cash injection of approximately $US1 billion ($1.4 billion). This significant deal has propelled the company into the ranks of the top-10 independent oil and gas companies worldwide.
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