Woodside Energy ceases talks on $52 bln Santos merger

Australia's Woodside Energy said on Wednesday it had ended talks with Santos to create a possible A$80 billion ($52.22 billion) global oil and gas giant. Woodside said it would only pursue a deal that would add value for its shareholders.

Australia's Woodside Energy said on Wednesday it had ended talks with Santos to create a possible A$80 billion ($52.22 billion) global oil and gas giant.

Woodside said it would only pursue a deal that would add value for its shareholders. Santos shares dropped 5% soon after the news was announced while Woodside's stock rose 2% on Wednesday.

"While the discussions with Santos did not result in a transaction, Woodside considers that the global LNG sector provides significant potential for value creation," Woodside CEO Meg O’Neill said in a statement. Woodside had faced pressure from some investors not to pay a premium for Santos.

The deal would have been one of the largest corporate takeovers in Australian history. If the merger had taken place, it would have created a major global liquefied natural gas (LNG) producer that could attract more offshore investors as gas is seen as a key bridging fuel in the shift to cleaner energy. ($1 = 1.5319 Australian dollars)