Australian LNG players Woodside and Santos have ceased talks regarding a potential merger.
The two firms confirmed in December 2023 that they were in discussions regarding the merger saying there was no certainty that the discussions would lead to a transaction.
The combination of the two firms would have created a merged energy and LNG giant with a market value of about A$80 billion ($52.3 billion).
Woodside CEO Meg O’Neill said in a statement 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. 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.
Santos also released a separate statement regarding the end of merger talks.
“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,” the firm said.
Moreover, 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.
