International News 18 June 2025
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Abu Dhabi energy giant seeks US$18.7 billion acquisition of Santos
Santos, Australia's second-largest gas company, has entered into an agreement for a US$18.7 billion acquisition by an international consortium led by Abu Dhabi's National Oil Company (ADNOC). The consortium is aiming to expand its global gas business through this deal. Despite Santos shares rising by 11%, they did not reach the 28% premium offered over the previous share price, due to concerns regarding Australian government regulations. The proposed bid is valued at US$5.76 or A$8.89 per share, which exceeds Santos' most recent traded value of A$7.72. If successful, this deal would represent the largest cash acquisition in Australian history. This strategic move aligns with ADNOC's ongoing expansion plans and coincides with the current rise in global oil prices, a development that is in line with current market trends. The consortium would gain control over major LNG facilities in Australia and stakes in key projects like PNG LNG and the undeveloped Papua LNG project.
China's Retail Spending Rises as Industrial Production Slows
In May, factory production growth in China decelerated, reaching the lowest rate in six months, while retail sales exhibited a robust increase. Despite the challenging trade pressure from the United States, the Chinese economy received some relief. Industrial production saw a 5.8% increase, which is slower than the previous months and below the expectations of analysts. This marks the slowest growth seen since November 2024. Conversely, retail sales exhibited robust growth of 6.4%, surpassing initial projections and marking the most significant surge since December 2023. However, analysts remain cautious about the economy as the trade war ceasefire with the US has not prevented a weakening trend, with high tariffs and other challenges persisting, leading to a predicted continued slowdown in economic growth this year. The uptick in retail sales can be attributed to an increase in public spending during the Labour Day holiday period, as well as the resumption of the trade-in programme for consumer goods.
Total Energies adds stake in Malaysian gas company to strengthen Asian market
TotalEnergies' CEO, Patrick Pouyanne, announced at the Energy Asia conference in Kuala Lumpur the company's plans to double its Malaysian business. He cited the country's strategic location for energy production and market service as a key factor in the decision. Last year, TotalEnergies acquired a 100% stake in SapuraOMV Upstream, a Malaysian gas producer with key assets in offshore blocks SK408 and SK310. The company has also secured LNG contracts for Asian clients, demonstrating its strategic focus on the Asian market despite declining sales in Europe. In addition, TotalEnergies aims to allocate 30% of its capital expenditure towards developing an integrated power business, with the goal of increasing the power sector's share in its portfolio to 20% by 2030.