XRG is withdraws from Abu Dhabi a $ 19 billion offer for Santos in Australia

The National Oil Company in Abu Dhabi has moved away from its 19 billion dollars offer to Santos in Australia, where it ended months of speculation about what could have been one of the largest energy deals in the country.

The consortium, which includes the sovereign wealth fund in Abu Dhabi ADQ and Investment Company Carlel, made a 2 -billion dollars an indication of Santos in June, but confirmed on Wednesday that he would not continue in a binding acquisition.

“It is over,” said a source familiar with the CNBC. “The truth is, during the operation, Santos was not flexible,” the source added. CNBC understands that the XRG, led by XRG, has basic concerns about value, taxes and the timing of detection.

The source also described the Santos negotiating team as “unrealistic” and said that this was not the “result” that XRG hopes in Abu Dhabi.

XRG said that “a group of factors” removed its third attempt to secure Santos, which Abu Dhabi was hoping to enhance her ambitions to export LNG to Asia’s markets. It is understood other issues, such as lack of communication and insecurity on capital profit tax, and a conversation Media reports on environmental risks The consortium was not aware of it before, it was part of the broader issues that came out of the deal.

Santos, in a statement On Thursday, he said, “The XRG Federation will not agree to acceptable conditions that protect the value of the potential treatment of Santos shareholders, taking into account the potentially extended time frame to the completion and organizational risks associated with the treatment.”

Although the conversations with Santos have collapsed, a consortium is still expected to explore opportunities in the energy sector in Australia. The sources familiar with the matter also confirmed that organizational approvals and unions were not a source of concern, as they described the decision as “purely commercial.”

XRG, which is $ 80 billion, newly It took control of ADNOC subsidiaries, in a step to enhance their financial position to search for global energy deals.

Santos, who is based in Adelaide, was the subject of frequent acquisition of interest where global demand for natural gas accelerates as well as energy transmission. The company plays a major role in providing liquefied natural gas for Asian buyers, and it has been a strategic goal for international investors.

CNBC contacted Santos to comment.