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Shares of Australia’s Santos jumped to a five-week excessive on Friday, on information it is in talks to merge with Woodside Vitality.
Santos and Woodside Vitality, two of Australia’s largest oil and gasoline producers, have opened talks to debate a possible merger in what may create a A$80 billion ($52 billion) oil and gasoline behemoth.
“Concurrently, Santos is assessing a spread of different structural choices with a view to unlocking worth,” in response to an announcement issued by Santos on Thursday.
Shares of Santos spiked 11% in early commerce on Friday whereas Woodside slipped 0.7%.
Santos, which has a market capitalization of round 22 billion Australian {dollars} ($14.5 billion), mentioned throughout an investor briefing final month that it was engaged on choices to raise its worth. Woodside boasts a market capitalization of round A$57 billion (greater than $37 billion).
Discussions are nonetheless at an early stage — in statements to the press, each corporations emphasised there may be “no certainty” the discussions may result in a deal.
In June final yr, Woodside merged with BHP Group’s oil and gasoline arm. Santos in 2021 acquired power exploration firm Oil Search, however a multibillion-dollar gasoline drilling venture has been derailed by a court docket problem.
Santos shares rose to a 5 week excessive
