Abu Dhabi’s XRG withdraws $19 billion offer for Australia’s Santos

Abu Dhabi's National Oil Company has walked distant from its $19 cardinal connection for Australia's Santos, ending months of speculation implicit what would person been 1 of the country's largest vigor deals.

The consortium, which includes Abu Dhabi sovereign wealthiness money ADQ and concern steadfast Carlyle, made the $19 cardinal indicative connection for Santos successful June, but confirmed connected Wednesday that it volition not proceed with a binding takeover.

"It's over," a root acquainted with the substance told CNBC. "The world is, during the process, Santos was inflexible," the root added. CNBC understands the XRG-led consortium had cardinal concerns astir value, tax, and the timeliness of disclosure. 

The root besides described the Santos dialog squad arsenic "unrealistic" and said that this was "not the outcome" Abu Dhabi's XRG was hoping for. 

XRG said a "combination of factors" derailed its 3rd effort astatine securing Santos, which Abu Dhabi had hoped would bolster its ambitions to export LNG into the Asia markets. It's understood different issues, specified arsenic a deficiency of connection and inflexibility implicit superior gains tax, and recent media reports implicit biology risks that the consortium was not antecedently alert of, were portion of the broader issues that derailed the deal. 

Although talks with Santos person collapsed, the consortium is inactive expected to research opportunities successful Australia's vigor sector. Sources acquainted with the substance besides emphasised that regulatory approvals, and unions, were not a concern, calling the determination "purely commercial."

XRG, which has an endeavor worth of $80 billion, recently took power of ADNOC's listed subsidiaries, successful a determination to fortify its fiscal presumption to question retired planetary vigor deals.

Santos, headquartered successful Adelaide, has been the taxable of repeated takeover involvement arsenic planetary request for earthy state accelerates alongside the vigor transition. The institution plays a cardinal relation successful supplying LNG to Asian buyers, and has been a strategical people for planetary investors. 

CNBC has reached retired to Santos for comment.