“Woodside has ceased discussions regarding a potential merger with Santos,” Woodside said in a statement to the ASX.
“For every opportunity Woodside assesses,it conducts thorough due diligence,and will only pursue a transaction that is value accretive for its shareholders,” the company added,giving no further details about the decision.
Following the announcement,Adelaide-based Santos’ share price slumped more than 5 per cent in afternoon trade,having fallen 5.9 per cent over the past six months. Perth-based Woodside’s stock gained 1.7 per cent. It has lost more than 14 per cent in market value over the past six months.
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O’Neill said that although the discussions with Santos did not result in a transaction,Woodside still sees significant opportunities for value creation in the global LNG sector.
“Woodside’s world-class global portfolio,growth pipeline and strong balance sheet underpin our attractive investment proposition for Australian and global investors,” she said.
The oil and gas giant reported in late January that it hit record production in 2023,pumping out 187.2 million barrels of oil and reaching the top end of its own forecasts.