Santos shares rise on takeover interest
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More news: Shares in Santos jumped at market open on the ASX, after Bloomberg reported that Middle Eastern energy giants Saudi Aramco and Abu Dhabi National Oil Company were considering separate takeover bids for the Adelaide-based oil and gas company.
Santos shares were up 3.9% to $7.98 by 10:45am AEST.
Aramco, Adnoc weigh bids for Santos: Bloomberg
The news: Saudi Aramco and Abu Dhabi National Oil Company (Adnoc) have been considering separate takeover bids for Santos, as the state-owned Middle Eastern energy groups look to boost their gas investments overseas, Bloomberg reported.
The numbers: Shares of Santos have gained about 1% on the ASX this year, giving the oil and gas major a market value of $24.9 billion.
The context: Aramco and Adnoc have been conducting initial evaluations of Santos as a possible acquisition target, according to people with knowledge of the matter who told Bloomberg.
Gulf countries are increasingly looking to invest in gas, which is seen as a critical asset in the energy transition. Qatar has outlined plans to nearly double LNG export capacity, while Saudi Arabia and the United Arab Emirates are investing heavily in domestic fields and building trading operations globally.
Adelaide-based Santos, which has liquefied natural gas projects in Australia, Papua New Guinea and Timor-Leste, could also attract interest from other potential buyers, the people said, while suitors are yet to decide whether to proceed with any proposals.
The source: Bloomberg
