Woodside calls off merger talks

Woodside said it would only pursue a deal that would add value for its shareholders. — Reuters

SYDNEY: Australia’s Woodside Energy says it had ended talks with Santos to create a possible A$80bil (US$52.22bil) global oil and gas giant.

Woodside said it would only pursue a deal that would add value for its shareholders.

Santos shares dropped 5% soon after the news was announced yesterday, while Woodside’s stock rose 2%.

“While the discussions with Santos did not result in a transaction, Woodside considers that the global liquefied natural gas sector provides significant potential for value creation,” Woodside chief executive officer Meg O’Neill said in a statement.

Woodside had faced pressure from some investors not to pay a premium for Santos. — Reuters