XRG Consortium has withdrawn its indicative proposal to acquire 100 per cent of Santos shares.
On 25 August 2025 Santos agreed to a second extension of the process and exclusivity deed, to enable the finalisation of the scheme implementation agreement and for the XRG to obtain all necessary approvals to enter into a binding transaction. The XRG Consortium confirmed that it had not found anything in due diligence that would lead it to withdraw its indicative proposal.
Then in mid-September, Santos advised XRG that it expected to enter into an agreement at the agreed offer price of $US5.62 if a binding proposal was received. In response, XRG notified Santos of its decision not to proceed with the proposal.
In that notification, the XRG Consortium confirmed that it maintains a positive view of the Santos business and has respect for the management team.
The agreement was hampered by a number of key factors, including negotiating acceptable terms which protected Santos shareholders relating to the extended timeframe and regulatory risk, allocation of risk relating to XRG’s obligation to secure regulatory approvals, and the provision of a reasonable commitment by XRG to the development and supply of domestic gas.
Despite the unfavourable outcome, the Santos board is getting on with business, with the company set for a 30 per cent increase in production by 2027.
“Santos has a clear strategy, strong leadership and high-quality growth opportunities across our global portfolio,” Santos chair Keith Spence said. “The board is confident these strengths will deliver long-term value for shareholders.”
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