Santos Shares Jump on Merger Talks With Energy Rival Woodside
By Stuart Condie
SYDNEY--Santos was the best-performing stock on the Australian bourse in early trade after the energy explorer said it was in talks with rival Woodside Energy over a potential US$52 billion merger.
Shares in Santos were up 6.0% at 7.24 Australian dollars (US$4.78) about an hour into Friday's trading session. The stock hasn't gained as much in a single day since Aug. 19, 2022, shortly after that year's first-half results announcement.
Woodside and Santos said late Thursday that talks were at an early stage and there was no agreement over a deal that would rank as one of the largest in the energy sector this year. Santos, whose stock had declined about 5% over 12 months before the announcement, said it was weighing the merger alongside other options to boost value for shareholders.
Woodside, which is more than twice the size of Santos in terms of market capitalization, could offer more than A$9.00 a share to secure an all-stock deal, Citi analyst James Byrne said in a note.
"The biggest sticking point is likely Woodside's board finding the right value that would appease frustrated Santos shareholders," Byrne said.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
December 07, 2023 20:00 ET (01:00 GMT)
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