Woodside Energy has announced that it has ceased discussions with Santos regarding a potential merger between the two energy companies.
Announced in December 2023, the potential merger, if it went ahead, would have created the biggest LNG producer in Australia, by merging the two into an $80 billion gas giant.
In a statement released to its investors, Woodside Energy said the company continuously assesses a range of organic and inorganic growth opportunities.
Despite this, Woodside chief executive officer Meg O’Neill said the company will only pursue a deal if it is valuable 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,” she said.
“While the discussions with Santos did not result in a transaction, Woodside considers that global LNG sector provides significant potential for value creations.
“Woodside’s world-class global portfolio, growth pipeline and strong balance sheet underpin our attractive investment proposition for Australian and global investors.”
In its own statement, Santos confirmed that discussions between the two companies had ceased.
“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 statement said.
“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.”