DUBAI — A consortium led by the UAE's state-owned Abu Dhabi National Oil Company has retracted a takeover bid worth $18.7 billion for Australian energy group Santos, it said on Wednesday.

 

The Emirati energy firm made its bid via a consortium led by its own subsidiary, XRG.

 

"The XRG-led Consortium has withdrawn its indicative offer and will not proceed with a binding offer for Santos," the group said in a statement.

 

"While the Consortium maintains a positive view of the Santos business, a combination of factors, when considered collectively, have impacted the Consortium's assessment of its indicative offer," it added.

 

It said it took the decision after "taking into account all commercial factors and the terms of the Scheme Implementation Agreement required by the Santos Board".

 

Other members of the consortium include ADQ, an Abu Dhabi sovereign wealth fund, and global investment firm Carlyle.

 

In June, the consortium had led an $18.7 billion takeover bid for Santos as it sought to build a global natural gas giant.

 

At the time, Santos' board said it planned to unanimously recommend ADNOC's offer to shareholders if it can agree on the takeover terms.

 

Adelaide-based Santos has operations in Australia, East Timor, Papua New Guinea and the US, and is a major supplier of liquefied natural gas in Australia and Asia.