.jpg)
1 hour ago
4
Article content
(Bloomberg) — Exxon Mobil Corp. is studying potential acquisition targets including Australia’s Woodside Energy Group, as the US giant eyes options to deepen its presence in liquefied natural gas and Asian markets, according to people with knowledge of the matter.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
Exxon has been holding early-stage discussions internally, said the people, who asked not to be named as they are not allowed to speak to the media. Woodside is one of several targets the company has been evaluating, the people said.
Article content
Article content
Article content
Woodside’s American depositary receipts rose as much as 14% in New York on Friday. The company had a market capitalization of around A$59 billion ($42 billion) at the close of trading in Sydney.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
Deliberations are preliminary, and there is no certainty that they will lead to an offer, they said. Representatives for Exxon and Woodside declined to comment.
Article content
Exxon completed the acquisition of US shale producer Pioneer Natural Resources Co. for $60 billion in 2024 and has since been looking for further opportunities. A move for Woodside, Australia’s top gas exporter, would expand its presence outside the US and push the company toward LNG, a sector in which it has lagged rivals like Shell Plc and TotalEnergies SE.
Article content
An LNG-focused deal has become a more serious priority since the start of the war in Iran in late-February, which effectively shut the Strait of Hormuz and choked a fifth of global supply — prompting buyers in Asia to look for alternative suppliers outside the Middle East, one of the people said.
Article content
Woodside is Australia’s largest LNG exporter, and is developing a project on the US Gulf Coast which is set to come online by 2029. The company has also secured long-term sales agreements with leading buyers across Asia, including in South Korea and Japan, making it an attractive target for companies seeking a foothold in the LNG market.
Article content
Article content
Smaller Australian rival Santos Ltd. is one of few alternatives for would-be suitors, and has been the target of repeated bids. It was in talks last year with consortium led by a subsidiary of Abu Dhabi National Oil Co. but the deal unraveled.
Article content
A takeover offer, should it materialize, would be an early test for Liz Westcott, who took over as chief executive officer of Woodside this year after Meg O’Neill left to head BP Plc.
Article content
At home, Woodside is pushing forward with the Scarborough and Browse gas projects, which will help to lift the company’s LNG exports into the next decade. Woodside recently increased its stake in Browse in a move to help push forward the project.
Article content
Woodside and Exxon are already partners in the Bass Strait project, with Woodside taking over the operatorship last year.
Article content
(Updates with Woodside ADR move in third paragraph.)
Article content
English (US)