Santos has confirmed merger talks with Woodside Energy

Santos has confirmed it is in early stage merger talks with the much larger, Perth-based oil and gas giant Woodside Energy.

Santos managing director Kevin Gallagher.

Adelaide’s largest company, Santos, has confirmed it is in merger talks with the much larger Woodside Energy.

Santos told the ASX late on Thursday that rumours about it being in talks with Woodside were correct.

Details of the progress of the merger talks, and crucially where any merger entity would be headquartered, are scant at this stage.

Santos said in a statement that it “confirms it has engaged in preliminary discussions with Woodside regarding a potential merger’’.

“Santos continuously reviews opportunities to create and deliver value for shareholders,” it said.

“Concurrently, Santos is assessing a range of alternative structural options with a view to unlocking value as referred to on Santos’s investor day on 22 November 2023.

“The consideration of any merger is at an early stage and there is no agreement between the parties.

“There is no certainty that any transaction will eventuate from these discussions. Santos will continue to update the market in accordance with its continuous disclosure obligations.’’

Wooside, which is headed by managing director Meg O’Neill, reiterated Santos’s comments that the talks were early stage.

“Discussions remain confidential and incomplete, and there is no certainty that the discussions will lead to a transaction,’’ it said.

“As a global energy company, Woodside continuously assesses a range of opportunities to create and deliver value for shareholders.’’

Santos is valued at $22.7bn while Woodside is worth $59.8bn.

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Originally published as Santos has confirmed merger talks with Woodside Energy