Published On: December 8th, 2023
Santos’s stock in Australia surged to a five-week high on Friday following reports from Santos News Australia that the business is in talks to merge with Woodside Energy. After initial merger talks with Woodside, Santos shares surged, helping the Australian Securities Exchange (ASX) end positively today. The ASX200 closed at 7,194 points, up 21.6 points or 0.3%, owing to Santos’s surge. Today, the energy sector outperformed the rest, seeing a value increase of around 1%. Basic materials, healthcare, consumer durables, real estate, and financial stocks came next.
The Santos & Woodside merger would create a massive gas market with a market valuation of over $80 billion. The energy business listed on the ASX 200 emphasised that there was no assurance the transaction would proceed. The merger of Australia’s two most significant gas and oil producers would be the most prominent business transaction in the nation in several years. This is because the volatility in the financial markets and rising interest rates have slowed acquisition activity. Following the Santos News Australia release, Santos saw a gain of almost 6.15% to 7.25%, while Woodside saw a decrease of roughly half a percent to close at $29.81.
Santos Australia Share Price
Santos News Australia reports the ASX is rising due to a jump in Santos shares after first talks on a merger with Woodside. According to Neil Beveridge, an analyst at Bernstein, a transaction between them would establish an LNG powerhouse with yearly sales of 16 million metric tons. Both businesses are dealing with growing decarbonisation pressures and difficulties with ongoing projects. Santos’ stock has decreased 4.3% this year, while Woodside’s share price has dropped 15.4%.
Santos, valued at about AU$ 22 billion on the market, stated that it was exploring ways to increase its worth. The shares of both firms have decreased recently. Last month, Santos CEO Kevin Gallagher told investors, “We are all very frustrated with how undervalued we are.” Santos acquired Papua New Guinea-focused Oil Search Ltd. in a $15 billion deal in 2021. This deal was done after the company turned down a $10.9 billion acquisition offer from Harbour Energy Ltd. in 2018.
Santos possesses numerous assets, including a share in an LNG export project in Papua New Guinea and natural gas production in Australia.
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