A consortium led by Abu Dhabi National Oil Company (Adnoc) subsidiary XRG has withdrawn its $18.7 billion offer to takeover Australian energy player Santos.

XRG said that while the consortium maintained a “positive view” of Santos, “a combination of factors” impacted the assessment of its indicative offer.

“Following a comprehensive evaluation and taking into account all commercial factors and the terms of the Scheme Implementation Agreement (SIA) required by the Santos Board, the Consortium has determined that it will not be proceeding with the proposed transaction,” a consortium statement said.

ADNOC’s investment arm XRG, with Abu Dhabi Development Holding Company (ADQ) and private equity firm Carlyle, had until 19 September to submit a binding offer.

The Santos deal would have allowed the XRG-lead consortium access to two Australian LNG operations, Gladstone LNG and Darwin LNG, along with stakes in PNG LNG and the undeveloped Papua LNG.

(Writing by Bindu Rai, editing by Brinda Darasha)

bindu.rai@lseg.com