The oil giants’ merger is subject to approval from Papua New Guinea courts. However, Oil Search’s court date has today been pushed back for the second time.
At the time of writing, the Santos share price is $6.905, 0.65% lower than its previous close.
Let’s take a look at the latest news of the creation of a regional oil giant.
New merger delays
The Santos share price is sliding today amid Oil Search’s Papua New Guinean court date being pushed to tomorrow.
Oil Search was initially set to face court in late October. On the final session of last month, it was announced the appearance had been pushed back until today.
Now today is here, the first court date has been delayed until tomorrow at the request of the Papua New Guinea National Court.
According to reporting by the Australian Financial Review, full documentation for the merger was meant to be released to the ASX today.
Prior to the delays, the companies expected their merger would be effective on 2 December.
However, that schedule will likely be scrapped. Oil Search stated it will update the market when a new timetable has been approved by the court.
Upon completion of the merger, the resulting entity will have a $21 billion valuation. The all-scrip deal will see Oil Search holding around 38.5% of the new company and Santos owning approximately 61.5%.
In addition to approval from Papua New Guinea courts, the deal is subject to regulatory and shareholder approval.
Santos share price snapshot
Since the proposed merger between Santos and Oil Search was announced, the Santos share price has gained around 14%.
It is also currently 7% higher than it was at the start of 2021.
The post Santos (ASX:STO) share price slips as Oil Search merger delayed again appeared first on The Motley Fool Australia.
Should you invest $1,000 in Santos right now?
Before you consider Santos, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Santos wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
- Why is the Oil Search (ASX:OSH) share price having such a great start to the week?
- 5 things to watch on the ASX 200 on Monday
- Santos (ASX:STO) slips amid CSIRO carbon capture partnership
- 5 things to watch on the ASX 200 on Friday
- Move over Twiggy, here’s why Santos’ (ASX:STO) boss is focused on blue hydrogen
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/3D2vkFI