Santos slides after another delay in $18.7B ADNOC-led takeover

[Dawn over petroleum pump]
Grafissimo/E+ via Getty Images

Santos (OTCPK:STOSF [https://seekingalpha.com/symbol/STOSF]) (OTCPK:SSLZY [https://seekingalpha.com/symbol/SSLZY]) fell as much as 3.5% in Australian trading Tuesday, after saying the consortium led by Abu Dhabi's National Oil Company will be unable to finalize [https://www.reuters.com/business/energy/australias-santos-flags-delay-finalising-adnoc-led-offer-beyond-deadline-2025-08-19/] an $18.7B takeover bid for at least another four weeks, missing the August 22 deadline.

The consortium, led by ADNOC's investment arm XRG, alongside Abu Dhabi Development Holding Company and private equity firm Carlyle, told Santos (OTCPK:STOSF [https://seekingalpha.com/symbol/STOSF]) (OTCPK:SSLZY [https://seekingalpha.com/symbol/SSLZY]) it would need at least four more weeks to secure all required approvals, even on an expedited timeline, and potentially longer.

"Given the scale of the transaction, the XRG-led consortium continues to conduct due diligence and progress negotiations on a binding agreement," the consortium said.

The delay adds to uncertainty around the transaction announced in June [https://seekingalpha.com/news/4458214-santos-gets-187b-takeover-offer-from-adnoc-led-consortium], which also faces regulatory hurdles as Santos (OTCPK:STOSF [https://seekingalpha.com/symbol/STOSF]) (OTCPK:SSLZY [https://seekingalpha.com/symbol/SSLZY]) has assets in Australia, Papua New Guinea and the U.S.

Australia's second-largest producer of oil and natural gas had said the consortium offered A$8.89/share (US$5.76/share) in cash.

MORE ON SANTOS

* Santos: Potential Offer [https://seekingalpha.com/article/4801357-santos-potential-offer]
* Financial information for Santos [https://seekingalpha.com/symbol/SSLZY/income-statement]