Oil Search, Santos to Merge Into $16 Billion LNG Powerhouse
- Agreement would combine LNG assets across Australia, PNG
- Combined group expected to attract bigger pool of investors
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Australia’s second- and third-biggest oil and gas companies are set to merge to become one of the largest in the region and in the top 20 globally.
Oil Search Ltd. on Monday said it agreed to an improved all-share offer from Santos Ltd. that would give its equity holders 0.6275 new Santos shares for each one held, giving them about 38.5% of the merged group. The combined entity would have a market capitalization of about $16 billion, vying with Woodside Petroleum Ltd. to be Australia’s biggest independent liquefied natural gas producer.