XRG Abu -Dobby withdraws $ 19 billion for Australia Santos

Abu -Dabobi’s national oil company departed from $ 19 billion for the Australian Santos, ending with speculation months about what would be one of the largest energy transactions in the country.

The consortium, which includes Abu -Dabi Sovereign Fund ADQ and the Carlyle investment firm, made $ 19 billion for Santos in June, but confirmed on Wednesday that it would not be continued binding.

“It is over,” said the CNBC source familiar with this question. “The reality is that Santos was inflexible during the process,” the source added. CNBC realizes that the consortium led by XRG had key problems around the cost, tax and timeliness of disclosure.

The source also described the team of Santos talks as “unrealistic” and said it was “not the result” that XRG hoped.

XRG said the “combination of factors” thwarted its third attempt to provide Santos, which hoped to strengthen his ambitions to export the LP to Asia’s markets. Of course, other questions such as lack of communication and inflexibility compared to capital gain and recent Media report on environmental risks The fact that the consortium had not previously been aware was part of the broader questions that thwarted the deal.

Although negotiations with Santos have fallen apart, the consortium must study the opportunities in Australia’s energy sector. Sources, familiar with this issue, also emphasized that the normative statements and trade unions did not raise concerns, calling this decision “purely commercial”.

XRG, which has an enterprise of $ 80 billion, recently Took control of the listed Adnoc subsidiaries to strengthen their financial position to look for world energy transactions.

Santos with the headquarters in Adelaide became the subject of repeated absorption, since global demand for natural gas is accelerated with the energy transition. The company plays a key role in providing Mrs. Asian buyers and has become a strategic goal for international investors.

CNBC turned to Santos for comments.