English
Stock of the day
Santos shares drop after $30 billion bid withdrawal
Santos faces setbacks as Abu Dhabi National Oil Company pulls a major takeover bid, leading to share downgrades and highlighting environmental and regulatory challenges.
(AI video summary)
This video was created on 18 September 2025 for IG audiences by ausbiz.
ASX code: STO
Santos faces environmental and regulatory hurdles
Santos has encountered a major setback as Abu Dhabi National Oil Company's investment arm, ZG, withdrew its $30 billion takeover offer just two days before the deadline. This decision followed due diligence concerns, prompting a reassessment of Santos' value. As a result, Santos shares fell 11.57% to $6.76, leading to a downgrade, with differing views on Santos' path forward.
Industry analysts point to Santos' struggles with environmental approvals for new projects, compounded by public pressure to address global warming. Unlike Woodside Energy, Santos is bound by agreements with the South Australian government, limiting its expansion and raising questions about its investment viability.
Investment outlook
Despite recent events, some in the industry remain optimistic about Santos, citing high-quality strategic assets like the Beetaloo development pipeline as drivers for growth. Gas is believed to play a crucial role in decarbonisation, highlighting Santos' global reach, including its Papua New Guinea (PNG) acquisition.
Important to know
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Ready to open an IG account?
Start your trading journey now
Follow us online:
