Australian gas company Santos has agreed to extend the exclusivity period for a $18.7 billion acquisition offer from an international consortium led by the Abu Dhabi National Oil Company (ADNOC).
The company’s shares saw a one percent increase during trading, following the extension of the due diligence period until September 19, which allows the consortium led by XRG, ADNOC’s investment arm, additional time to finalize a binding offer.
Last week, the consortium indicated that it would require more time beyond the due diligence deadline to obtain the necessary internal approvals to complete the acquisition.
Santos stated that any negotiations would include “customary protective measures” to safeguard its investors if the deal takes longer than anticipated.
Kevin Gallagher, the CEO of Santos, expressed satisfaction with the progress made: “We are pleased with the advancements we have achieved. Our collaboration with the XRG team over the past few weeks has gone well.”
He further noted, “Since the consortium has reiterated that nothing discovered during the due diligence process has given them reason to withdraw their offer, we have agreed to extend the timeline for the process.”
Analysts suggest that shares may receive support from the confirmation that the deal is still moving forward despite the delays.
The proposed acquisition requires regulatory approvals in Australia, Papua New Guinea, and the United States due to Santos owning assets in these countries.