Woodside abandons merger talks with Santos

Australian energy producer Woodside on February 7 said it had ceased discussions regarding a potential merger with Santos. 

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

“We continue to be disciplined in our approach to mergers and acquisitions and capital management to create and deliver value for shareholders,” she said. “While the discussions with Santos did not result in a transaction, Woodside considers that the global LNG sector provides significant potential for value creation.”

“Woodside’s world-class global portfolio, growth pipeline and strong balance sheet underpin our attractive investment proposition for Australian and global investors,” O’Neill added.

The merger also faced resistance from some Woodside investors. 

Santos in a separate statement said that 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.

"Santos has a clear strategy to deliver long-term shareholder value.  We have a strong balance sheet and continue to review options to unlock value for shareholders," the company said.