Cancelled merger talks see Santos shares fall as Woodside rallies
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More news: Santos shares slid 8% by 12.30pm AEDT on news that merger discussions with fellow energy giant Woodside would not proceed. Woodside shares rose 2% following the update.
Woodside calls off merger talks with Santos
The news: ASX-listed energy giants Woodside and Santos have ceased discussions over a potential merger.
The numbers: Woodside has a market capitalisation of $61 billion, while Santos' equity is worth $25 billion.
The context: The two companies opened merger discussions in December 2023. Both Woodside and Santos provided updates on the talks in their quarterly earnings report last month, with Santos CEO Kevin Gallagher confirming the two firms agreed to exchange information to assess the benefits for their shareholders.
What they said: In the latest announcement, Woodside CEO Meg O'Neill said: "We continue to be disciplined in our approach to mergers and acquisitions and capital management to create and deliver value for shareholders".
"While the discussions with Santos did not result in a transaction, Woodside considers that the global LNG sector provides significant potential for value creation," she said.
"Woodside's world-class global portfolio, growth pipeline and strong balance sheet underpin our attractive investment proposition for Australian and global investors."
The source: ASX announcement
