TAKEOVER Anyone ? Oil industry consolidation sparks into life...

TAKEOVER Anyone ?

Oil industry consolidation sparks into life with $19bn Santos offer. ASX:STO. ........

Is BP next ?

A takeover tilt at Santos Ltd (ASX:STO) by an Abu Dhabi-led group has jolted the oil sector awake, fuelling talk that energy dealmaking is back, and just getting started.

Shares in the Aussie energy group ended the session 11% higher it p confirmed it had received the $18.7 billion takeover approach.

The offer, delivered via ADNOC’s investment arm XRG, values Santos at A$8.89 per share, a 28% premium to Friday’s close.

The consortium, which includes Abu Dhabi Development Holding and US private equity firm Carlyle Group, had made two earlier indicative approaches in March.

Santos said it would recommend the bid to shareholders in the absence of a better offer, opening the door to what could become one of the largest inbound deals in Australia’s energy sector.

The proposal would hand the buyers control of Santos’ liquefied natural gas operations in Gladstone and Darwin, along with interests in Papua New Guinea.

The move comes amid mounting speculation over further consolidation in the sector.

BP PLC (LSE:BP.), which has a market value of $112 billion, is rumoured to be in the crosshairs of Shell PLC (LSE:SHEL, NYSE:SHEL), fuelling talk that larger rivals are positioning themselves for growth in a shifting global energy landscape.

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