Get all your news in one place.
100’s of premium titles.
One app.
Start reading
AAP
AAP
Derek Rose

Woodside, Santos end talks on possible $80b LNG merger

Woodside only pursues transactions that provide value for shareholders, CEO Meg O'Neill says. (Lukas Coch/AAP PHOTOS)

Woodside Energy and Santos say their merger talks have collapsed.

The tie-up between Australia's largest oil and gas company and its second-largest would have created an $80 billion LNG powerhouse.

But Woodside said on Wednesday it wouldn't move further on the possible transaction.

The company didn't provide details, with chief executive Meg O'Neill saying only that Woodside always conducted due diligence and only pursued transactions that provided value for shareholders.

"We continue to be disciplined in our approach to mergers and acquisitions and capital management to create and deliver value for shareholders," Ms O'Neill said.

"While the discussions with Santos did not result in a transaction, Woodside considers that the global LNG sector provides significant potential for value creation."

Following Woodside's announcement, Santos confirmed the merger talks, first publicly revealed in early December, had ceased.

"Following an initial exchange of information, sufficient combination benefits were not identified to support a merger that would be in the best interests of Santos shareholders," Santos said.

Early Wednesday afternoon, Woodside shares were up 1.7 per cent to $32.83 while Santos shares had slid 5.0 per cent to $7.475.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.