Santos Stock Surges on $18.7B Takeover Bid from ADNOC-Led Consortium

Santos Limited, Australia''s second-largest oil and gas producer, saw its shares jump 11% after receiving an $18.7 billion acquisition offer from a consortium led by ADNOC''s subsidiary XRG. The bid, priced at AU$8.89 per share, represents a 28% premium to Friday''s close and WOULD rank as Australia''s third-largest corporate takeover.

The proposed deal comes amid heightened oil market volatility, with prices spiking due to Middle East tensions following the Israel-Iran conflict. ADNOC''s MOVE signals strategic expansion into liquefied natural gas, leveraging Santos'' assets in Papua New Guinea and Australia.

This development follows failed merger talks last year between Santos and domestic rival Woodside Energy, which could have created an AU$80 billion energy giant. The all-cash offer underscores global energy players'' appetite for consolidation during commodity price fluctuations.