Australia oil and gas producers Woodside and Santos in merger talks

Shares of Australia’s Santos jumped to a five-week significant on Friday, on information it really is in talks to merge with Woodside Electricity.

Santos and Woodside Energy, two of Australia’s largest oil and gas producers, have opened talks to explore a probable merger in what could make a A$80 billion ($52 billion) oil and gas behemoth.

“Concurrently, Santos is assessing a range of different structural possibilities with a look at to unlocking price,” according to a assertion issued by Santos on Thursday.

Shares of Santos spiked 11% in early trade on Friday though Woodside slipped .7%.

Santos, which has a current market capitalization of all-around 22 billion Australian dollars ($14.5 billion), claimed through an investor briefing final month that it was performing on possibilities to carry its price. Woodside boasts a market place capitalization of all around A$57 billion (additional than $37 billion).

Conversations are however at an early stage — in statements to the push, both firms emphasised there is “no certainty” the discussions could guide to a offer.

In June previous calendar year, Woodside merged with BHP Group’s oil and gasoline arm. Santos in 2021 acquired vitality exploration company Oil Look for, but a multibillion-dollar fuel drilling undertaking has been derailed by a court docket problem.