Abu Dhabi National Oil Company P.J.S.C. (ADNOC) has announced its plans to transfer its 24.9 percent shareholding in OMV AG (OMV) to XRG P.J.S.C. (XRG), its wholly-owned international investment arm.
This transfer, pending regulatory approvals, aligns with ADNOC’s strategy to consolidate its international growth investments under the auspices of XRG, according to a statement.
Additionally, ADNOC is making strides in the preparation for the proposed formation of Borouge Group International, which aims to rank among the top four global producers of polyolefins. ADNOC’s intended 46.94 percent shareholding in this new entity is expected to be held by XRG upon the completion of the transaction, also contingent on regulatory approvals.
ADNOC remains steadfast in its longstanding partnership with OMV through XRG and reiterates its commitment to supporting the company’s ongoing growth and success, as per the release.
Read more: ADNOC Gas becomes largest addition to MSCI Index in 2025 boosting market capitalization
Takeover proposal from XRG
Last month, Australian liquefied natural gas (LNG) provider Santos Limited announced receiving a non-binding takeover proposal from a consortium led by ADNOC’s XRG. This proposal entails the acquisition of all ordinary shares currently outstanding in Santos for a cash offer amounting to $18.7 billion or $5.76 per share. The offer put forth by the XRG Consortium, which includes the Abu Dhabi Development Holding Company (ADQ) and Carlyle, reflects a 28 percent premium over the Australian company’s closing price on Friday. The transaction values Santos at an enterprise value of AU$36.4 billion, potentially marking it as the largest all-cash corporate buyout in Australian history, according to FactSet data. It would also stand as the third-largest takeover ever recorded in Australia, as indicated by the data.
Following the announcement, shares of Santos surged by 10.92 percent, reaching AU$7.72.
XRG’s agreement with Santos emerges during a period when oil prices are hitting multi-week highs due to rising tensions in the Middle East, leading to concerns regarding potential disruptions in oil exports from the region. Through this deal, the XRG consortium would acquire access to two Australian liquefied natural gas operations, in addition to stakes in PNG LNG and the undeveloped Papua LNG. Moreover, the company is progressing with an oil project in Alaska, which is expected to commence production in mid-2026.
In June, XRG expressed its ambition to establish a gas and LNG business with a capacity ranging from 20 million to 25 million metric tons annually by 2035. Last year, Santos reported sales of 5.08 million tons of LNG, with over 60 percent sourced from Papua New Guinea.
