There is nothing the AFR likes better than monopoly:
Santos investors are baulking at a low-premium merger deal with Woodside Energy, even with the drawcard of creating an $80 billion Australian oil and gas “champion” with clout on the global LNG stage.
The deal in play after both companies confirmed early-stage talks late Thursday involves a scrip-based merger with a small premium, something unacceptable to Santos shareholders convinced the stock is seriously undervalued on the ASX.
The ACCC must shut down this deal. It is profoundly anti-competitive and threatens chaos in Australian energy markets.
Woodside and Santos have toxic management cultures dedicated to monopolising the energy supply and abusing privilege.
Woodside is the joint owner of the Gippsland JV with Exxon. The Bass Strait volumes are declining, but they are a long way from spent:
Meanwhile, Santos still needs feed gas for its grossly capital-misallocated LNG export terminal in QLD.
Gippsland volumes will be redirected to China if this merger goes ahead, and the local gas market will once again be starved of supply.
Both WDS and STO have demonstrable records of lousy behaviour, bullying, and bribing Australian governments via the manipulated supply of gas and lobbying.
As they are doing right now. Extracting crazy margins from an elevated gas price coming out of the ground at $1Gj cash prices while charging $11Gj:
Which spills over directly into electricity prices given gas is the marginal price setter:
Both WDS and STO are vehemently opposed to climate change solutions as well.
An illiberal $80bn behemoth commanding the degree of market power this merger presents is an existential threat to the Australian public good.
