{"text":[[{"start":13.19,"text":"Abu Dhabi’s state oil company Adnoc has walked away from an $18.7bn deal for Santos, one of Australia’s largest energy groups, after negotiations soured. "}],[{"start":25.439999999999998,"text":"The bid, announced in June, represented Australia’s biggest takeover and would have transformed the international gas business of XRG, Adnoc’s overseas investment arm. "}],[{"start":37.48,"text":"However, there was strong domestic opposition to the prospect of an Australian gas company passing into foreign ownership, putting pressure on politicians charged with approving the deal. "}],[{"start":48.31999999999999,"text":"XRG said on Wednesday that while it “maintains a positive view of the Santos business”, there were a combination of factors that affected its assessment of the company’s value. "}],[{"start":61.11999999999999,"text":"One person familiar with the process said Santos had insisted that XRG and its partners, which included Carlyle, should pay any capital gains tax liability arising from the transaction. "}],[{"start":76.86999999999999,"text":"The person also said that Santos had not informed XRG about a long-running methane leak at its Darwin liquefied natural gas plant that made headlines earlier this month. The consortium “found out through the media — that was problematic”, the person said."}],[{"start":94.66,"text":"They denied that politics had been an issue and said XRG’s decision was “purely commercial”. Santos had been “inflexible and unrealistic” in its approach, the person said. “This is the third time that a company or consortium has walked away from this particular company.”"}],[{"start":113.6,"text":"XRG and its advisers have been lobbying Canberra since the deal was first revealed to pave the way for government approval of Australia’s second-largest energy producer."}],[{"start":124.38999999999999,"text":"The deal required approval by Australia’s Foreign Investment Review Board, as well as state governments, with the ultimate decision resting with Jim Chalmers, the country’s treasurer, who in June described the Santos bid as a “big transaction in a sensitive area”. "}],[{"start":143.92999999999998,"text":"Analysis by bank Barrenjoey of 31 transactions reviewed by the board over the past five years suggested there was a low risk of rejection."}],[{"start":155.05999999999997,"text":"However, the deal was pitched against concerns of a gas supply crisis on Australia’s east coast that had increased pressure on Australia’s Labor government to intervene. Smaller local energy players also described the takeover as not being in the national interest — forcing a stern reaction from XRG — while key unions had expressed strong opposition in the past week. "}],[{"start":181.43999999999997,"text":"Saul Kavonic, an analyst with MST Marquee, said: “The Australian government may have signalled to Adnoc that approval for this would not be straightforward, which has contributed to XRG’s decision to walk away. To the extent this is the case, Chalmers is a national hero for helping keep critical infrastructure in safe hands.”"}],[{"start":206.82999999999998,"text":"Santos had extended the due diligence period to allow XRG more time to finalise its bid, with a deadline due on Friday."}],[{"start":216.13,"text":"The collapse of the deal is the latest setback for Adelaide-based Santos, which last year held unsuccessful talks with large local rival Woodside. "}],[{"start":226.57999999999998,"text":"“The market will ask questions about Santos’s valuation after this, and any skeletons that may be lurking there, all the more so because XRG was a less price-sensitive buyer than most yet still couldn’t make it work,” Kavonic said. "}],[{"start":242.90999999999997,"text":"Santos did not immediately respond to a request for comment."}],[{"start":256.88,"text":""}]],"url":"https://audio.ftmailbox.cn/album/a_1758158940_5316.mp3"}