Oil and fuel large Woodside mentioned it has ended merger talks with its smaller rival Santos over a proposed $80 billion tie-up.
Having beforehand dampened expectations of a profitable deal to create one of many world’s greatest liquid pure fuel (LNG) firms, Woodside chief govt Meg O’Neill confirmed on Wednesday that talks have ceased after practically 9 weeks of due diligence.
Woodside’s Macedon fuel plant close to Onslow in West Australia.Credit score: Woodside
“Woodside has ceased discussions relating to a possible merger with Santos,” Woodside mentioned in a press release to the ASX.
“For each alternative Woodside assesses, it conducts thorough due diligence, and can solely pursue a transaction that’s worth accretive for its shareholders,” the corporate mentioned, giving no additional particulars concerning the resolution.
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O’Neill mentioned that though the discussions with Santos didn’t lead to a transaction, Woodside nonetheless sees important alternatives for worth creation within the world LNG sector.
“Woodside’s world-class world portfolio, progress pipeline and robust steadiness sheet underpin our engaging funding proposition for Australian and world traders,” she mentioned.
The oil and fuel large reported in late January that it hit document manufacturing in 2023, pumping out 187.2 million barrels of oil and reaching the highest finish of its personal forecasts.
The confidential merger talks between $57 billion Perth-based Woodside and $22 billion Adelaide-based Santos first got here to mild in early December.
