• 4 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 7 minutes Oil prices forecast
  • 11 minutes Algorithms Taking Over Oil Fields
  • 14 mintues NIGERIAN CRUDE OIL
  • 3 hours How Is Greenland Dealing With Climate Change?
  • 44 mins China Car Sales Plummet: Can Musk Unshovel His Groundbreaking?
  • 12 hours "Peace Agreement" Russia vs Japan: Control Over Islands Not Up For Discussion
  • 4 hours How Much Oil Does Aramco Have?
  • 2 hours Venezuela continues to sink in misery
  • 15 hours China's Exports Shrink Most In Two Years, Raising Risks To Global Economy
  • 1 day Solid-State Batteries
  • 16 hours BofA Sees Oil at $35-70
  • 10 hours Spy&State: Huawei Founder Says Firm Does Not Spy For China
  • 29 mins Socialists want to exorcise the O&G demon by 2030
  • 11 hours Oil Slide Worries Traders. *relax* This Should Get Sorted by Year End.
  • 23 hours protests in Canada over pipeline
  • 1 day WSJ: Gun Ownership on Rise in Europe After Terror Attacks, Sexual Assaults
  • 17 hours Bolsonaro Wins in Brazil
Is This The Answer To Canada’s Oil Crisis?

Is This The Answer To Canada’s Oil Crisis?

Besides oil-by-rail and new pipelines,…

Santos Agrees To Discuss $10.4B Takeover Bid From U.S. Harbour Energy

LNG exports

Australia’s oil and gas producer Santos said on Tuesday that it would engage in talks with U.S. Harbour Energy Ltd, after receiving the fourth unsolicited takeover bid from the U.S. firm since August 2017, with the latest bid raising the offer to US$10.4 billion (13.5 billion Australian dollars).

Santos has allowed the U.S. firm to start a due diligence after receiving the offer last week. The indicative offer price is US$4.98 per Santos share, equivalent to A$6.50 Australian dollars, the Australian firm said, noting that this was the fourth unsolicited bid it had received since August 2017. In each of the previous three bids, one in August last year, and two in March this year before the fourth offer, Harbour Energy has increased the indicative per-share offer. With the latest offer, “the Santos board considers that, based on the indicative offer price of A$6.50 per share, it is in the interests of shareholders to engage further with Harbour,” the Australian company said.

“There is no certainty at this time that the Harbour Proposal will result in an offer for Santos that is capable of being considered by shareholders,” Santos said.

If the parties reach a deal, Harbour would get access to low-cost oil and to LNG projects in Australia—enabling it to take advantage of the soaring natural gas demand in Asia. One potential setback for the acquisition could be the political and regulatory risk, as Australia’s energy supply shortage—especially gas—has raised fears that foreign-owned companies could ignore domestic needs to pursue profits overseas.

Related: Europe’s Biggest Gas Field To Close Over Quake Risk

“Santos has a leading natural gas business in Australia and interests in three operating LNG projects – two in Australia and one in Papua New Guinea – along with an established operating capability and a proven, experienced management team,” Harbour Energy CEO Linda Z. Cook said.

“Our focus for Santos going forward would be in natural gas and LNG in particular,” Cook said in an interview with Bloomberg on Tuesday.

Analysts see Harbour Energy’s latest sweetened takeover offer as a “knock-out bid”.

“We do see this latest Harbour Energy approach as a knock-out bid, one which the board of Santos will struggle to turn down,” RBC Capital Markets analyst Ben Wilson said in a note to clients, as carried by Bloomberg.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Bill Simpson on April 04 2018 said:
    Australians are hostage to big corporations even worse than Americans are. Their electricity goes off in Australia, while the giant corporations sell their natural gas to the Chinese.
    Like someone said, people get the government they deserve. The masses aren't too bright.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News