Oil Search rejects $16bn merger approach from Santos

oil santos merger would ppsantos
Gulf
  • Date: 07/20/2021
  • Source: Energy Voice
  • Sector: Oil & Gas
  • Country: Gulf

Oil Search rejects $16bn merger approach from Santos

Australia’s Santos said today that it approached compatriot Oil Search about a potential merger last month. However, the offer to create an energy company with a market value of $16.1 billion was rejected by Oil Search, which has major stakes in Papua New Guinea’s (PNG’s) emerging liquefied natural gas (LNG) sector. Santos said that it is still trying to discuss the merits of a deal with Oil Search. “The potential merger of Santos and Oil Search is a logical combination of two industry leaders to create an unrivaled regional champion of size and scale,” Santos said in a statement today. PNG-focused Oil Search is a takeover target The proposed merger would put the combined company among the top 20 largest global oil and gas companies. It would also have a diversified portfolio of high quality, long-life assets across Australia and PNG, said Santos. Another benefit would be a robust balance sheet with strong liquidity that can self-fund growth options, added Santos. Santos said it offered 0.589 of its own shares in exchange for each Oil Search share on issue. Following approval of a merger deal, Oil Search shareholders would own 37% of the merged group and Santos’ shareholders would own…