XRG consortium gets two-week due diligence extension for Santos takeover: Australian oil and gas producer Santos has agreed to extend the exclusive due diligence period for the consortium led by Adnoc’s international investment arm XRG for another two weeks, after the consortium said it is done “substantially” with the process, Santos said in a statement. The consortium said it has so far found nothing that would change its plans to acquire Santos. It now has until 22 August to complete due diligence.

Background: The consortium, which includes Abu Dhabi sovereign wealth fund ADQ and private equity firm Carlyle, submitted in June an indicative, non-binding USD 18.7 bn takeover bid to acquire Santos. The consortium would pay USD 5.76 (AUD 8.89) per share as part of the transaction. The transaction — Adnoc’s biggest energy acquisition to date — would give it access to Santos’ 7.5 mn tons-per-year of LNG capacity and direct entry into fast-growing Asian markets as it looks to become a major global LNG player.

REMEMBER- The acquisition would require 75% support from Santos’ investors, as well as approval from several Australian regulators, including the Foreign Investment Review Board, which one analyst said previously could be a risk to the agreement, since it involves critical energy infrastructure in Australia. The company is the biggest supplier of natural gas in Australia, and owns pipeline gas and oil assets as well.

ADVISORS- Goldman Sachs and JB North & Co are financial advisors to Santos, while Rothschild & Co is acting as independent board advisor. Herbert Smith Freehills Kramer is acting as legal advisor to Santos.

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