Australian independent Santos does not expect to reach a binding deal with XRG consortium, led by Abu Dhabi's state-owned Adnoc's XRG arm, by the deadline it set for a $19bn takeover of the Adelaide-based firm.
A scheme implementation agreement (SIA) will not be reached by 22 August, when the exclusivity period under the process deed expires, but discussions with the consortium remain ongoing, Santos said on 19 August.
Final internal approvals are required, which could take up to four weeks, even if a SIA were agreed and final due diligence is completed, the consortium has advised Santos.
Several major Australian industrial gas users such as steelmaker Bluescope have raised concerns about the proposal's impact on domestic markets, as has domestic independent Beach Energy, Santos' joint venture partner in South Australia's onshore Cooper basin.
The federal treasurer has final say on the takeover but is not mandated to follow advice from Australia's Foreign Investment Review Board.
Release of Santos' results for the half-year ended 30 June 2025 has been pushed back from 20 August until 25 August, to better align with the end of the exclusivity period.
