By: AGBI

Australia’s Santos said that the $18.7 billion takeover deal with a consortium led by Abu Dhabi National Oil Company (Adnoc) would not be finalised for at least another month, missing the August 22 deadline.

The consortium, led by Adnoc’s investment arm XRG, alongside Abu Dhabi Development Holding Company (ADQ) and private equity firm Carlyle, told Santos it would need at least four more weeks to secure all required approvals.

“While discussions and final confirmatory due diligence have continued to be collaborative, the parties are yet to reach agreement on acceptable terms of a binding SIA (scheme implementation agreement),” Santos said in a statement.

With final terms still unresolved, it is unlikely for the parties to sign a scheme agreement before the extended Friday deadline.

The transaction, if completed, would give XRG stakes in major operations across Australia and Papua New Guinea. However, oil and gas producer Santos’ position as a key energy company in Australia poses regulatory challenges to the deal.

“Given the scale of the transaction, the XRG-led consortium continues to conduct due diligence and progress negotiations on a binding agreement,” the consortium said in a statement.

“Once due diligence has been completed and the scheme implementation agreement has been agreed, customary corporate approvals will be sought.”

The deal requires approval from regulators in Australia, Papua New Guinea and the US.

Meanwhile, Santos said it would defer its interim earnings report to August 25 from August 20.

Santos shares fell as much as 3.5 percent to a more than five-week low of A$7.68, compared to a 0.5 percent decline in the ASX200 benchmark index. It was among the top losers in the broader equities gauge.