17/06/2025

BIZ & FINANCE TUESDAY | JUNE 17, 2025

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Abu Dhabi state oil firm makes US$18.7b bid for Australia’s Santos SYDNEY: Abu Dhabi’s state-owned oil company is leading an US$18.7 billion (RM79 billion) takeover bid for Australian energy group Santos as it seeks to build a global natural gas giant, the two firms said yesterday. Santos’ board said it planned to unanimously recommend the Abu Dhabi National Oil Company’s offer to shareholders if it can agree on the takeover terms. offered US$5.76 a share in a bid for all of Santos’ outstanding stock, valuing the entire company at US$18.7 billion. The price per share is 28% higher than Santos’ closing level on Friday. In a statement, XRG said it aimed to build on Santos’ legacy as a trusted energy producer, “strengthening domestic and international energy security”. “The proposed transaction is aligned with XRG’s strategy and ambition to build a leading integrated global gas and LNG business,” it said. Santos’ board said it intended to “unanimously recommend” that shareholders vote in favour of the deal if it can agree on terms and there is no better offer. He expected “strong scrutiny” of the deal given that Santos owns critical gas infrastructure on Australia’s east and west coasts, and the Abu Dhabi National Oil Company’s status as a foreign government-owned entity. regulatory authorities in Australia, Papua New Guinea and the United States. Approval by Australia’s foreign investment regulator will be a“major issue”, said Saul Kavonic, head of energy research at MST Marquee.

It was the “final, non-binding” offer from the Middle East oil company, which had offered two, lower confidential bids in March, Santos said. The Abu Dhabi-based, state-owned energy firm made its bid via a consortium led by its own subsidiary, XRG. Other members of the consortium include Abu Dhabi Development Holding Company and global investment firm Carlyle.

Adelaide-based Santos has operations in Australia, Papua New Guinea, East Timor and the United States, and is a major supplier of liquefied natural gas in Australia and Asia. The Abu Dhabi National Oil Company

It would be Australian Treasurer Jim Chalmers’ first big decision on a foreign government bidding for major critical infrastructure, Kavonic said. – AFP Nissan plans to cut stake in Renault TOKYO: Nissan Motor CEO Ivan Espinosa said the automaker plans to reduce its stake in French partner Renault, the Nikkei business newspaper reported yesterday. Nissan and Renault had said in March they had agreed to reduce their required minimum stake in each other to 10% from 15%. Under their agreement, any share sale has to be coordinated with the other party and includes a right of first-refusal. Selling a 5% stake in Renault would raise about ¥100 billion (RM2.7 billion) at current share prices, funds Nissan plans to use for new vehicle development amid challenging business conditions, the Nikkei said. Nissan currently holds 15% of the French company, according to LSEG data. The news comes as Renault said on Sunday that boss Luca de Meo is leaving the car maker to pursue a role outside the auto industry. “We are bringing down our cross-shareholdings in order to invest in vehicles,” the newspaper quoted Espinosa as saying in an interview. Nissan said that there had been no change in its cooperative agreement with Renault. “Should a share sale be executed in the future, the proceeds are expected to be primarily allocated toward investments in product development. “However, no definitive decisions have been made at this stage,”it said in a statement. – Reuters

Santos said the “indicative proposal” by its Abu Dhabi suitor was subject to due diligence, agreement on terms, and approval by

Aussie regulator investigates stock exchange operator o ASIC cites widespread concerns and ‘serious failures’ at ASX

acknowledge there have been incidents that have damaged trust in ASX,” ASX chairman David Clarke said. The RBA declined to comment. ASX, which processes most of Australia’s stock trades and runs all of its clearing and settlement services, experienced the first of a series of technical glitches that resulted in a near full-day outage in the heightened trading volume of 2020, sparking an ASIC probe at the time. ASX, meanwhile, frustrated market participants – and ultimately ASIC and RBA – with an ambitious, ultimately disastrous, attempt to rebuild its clearing and settlement software platform with custom blockchain-like technology from 2017. After delays, expenses and mandatory industry consultations, ASX abandoned the project in 2022, and the following year it hired India’s Tata Consultancy Services to start afresh on a staged upgrade. The first part is due to be delivered in 2026, ASX has said. – Reuters

SYDNEY: Australia’s corporate regulator said it had launched a broad investigation into the country’s main stock exchange operator, escalating tensions that have simmered for years amid a botched software upgrade and a series of trade-processing glitches. The Australian Securities and Investments Commission (ASIC) said yesterday that it and the Reserve Bank of Australia (RBA), the exchange’s joint regulators, held ongoing concerns about the ability of ASX to maintain stable, secure and resilient critical market infrastructure. ASIC was already reviewing a December 2024 malfunction of ASX’s settlement technology. But the regulator said it would cancel that project and order an expert panel to investigate the “governance, capability and SYDNEY: British luxury carmaker Jaguar Land Rover (JLR) lowered its fiscal 2026 earnings before interest and taxes margins forecast to 5%-7% yesterday from 10% earlier, amid uncertainty in the global auto industry as US tariffs loom. Shares in the company’s Indian parent Tata Motors slumped as much as 5.2% in early trade following the announcement. The revised EBIT margin forecast is also below JLR’s reported 8.5% margin for the previous fiscal year ended March 31. JLR added it sees free cash flow of close to zero in fiscal 2026. The company, which derives over quarter of its sales from the US, had temporarily paused shipments to the country after President Donald Trump slapped a 25% duty on all foreign-made vehicles sold in the world’s second-largest car market. The “Defender”sport utility vehicle maker said it is re-allocating available units to“accessible markets”, to boost profits. It added that it continues to engage with both the US and UK governments regarding a trade deal signed in May, which allows the UK to export 100,000 cars a year to the US at a 10% tariff, below the 25% levy for other nations. While JLR’s “Range Rover” SUV lineup is manufactured in the UK, the popular “Defender” is made in Slovakia, a member of the European Union, which does not yet have a trade pact with the Trump administration. The carmaker said it is assessing pricing actions in the US to help offset the tariff impact. Analysts have said JLR may be less affected by the increased costs associated with the tariffs, thanks to a wealthier customer base that is unlikely to be deterred by a bigger price tag. – Reuters

risk management frameworks and practices across the group”. Shares of ASX were down 7% in afternoon trading, their biggest intraday fall in a year, against a flat overall market, as the company’s relationship with regulators deteriorated further after years of rebukes. ASIC chairman Joe Longo did not specify what prompted the ratcheting up of scrutiny except to say in a statement that “the decision to initiate an inquiry follows repeated and serious failures at ASX”. The regulator would publish the investigation’s findings, although the timing was still to be decided, ASIC added. ASX said it acknowledged the seriousness and significance of ASIC’s investigation and that it was cooperating with the regulator. “We have been working hard on a transformation strategy ... but we

Jaguar Land Rover trims margin forecast on US tariff concerns

Jaguar and Land Rover logos are displayed in front of their showroom in New Delhi. – REUTERSPIC