The South Australian Government says it will fight to keep the state’s largest company, oil and gas giant Santos, from being taken over by a consortium led by XRG—the investment arm of Abu Dhabi National Oil Company.
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Santos announced it had received an almost AU$30 billion takeover offer from the consortium, with its board intending to unanimously recommend the sale to shareholders.
South Australian Energy and Mining Minister Tom Koutsantonis said having Santos headquartered in the state was of “strategic and vital importance”, and that legislation required the government’s consent for change of licence ownership in the resources sector.
“We’re going to fight to keep it here,” he said.
“We’ve got legislation which puts us at the table. That means we’re going to use that legislation, and if the deal is not in the interests of South Australians, the South Australian government will say so and act accordingly.
“If this deal is not in the interests of Australia … then the Commonwealth government will look at it and have a say.
“If it is in both of our interests, it will go ahead; if it’s not, it won’t. It’s a very simple equation.”
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XRG said it intended to keep Santos’ headquarters in Adelaide and would work closely with the existing management team to accelerate growth and support local employment in the communities where Santos operates.
