PNG competition watchdog approves Santos, Oil Search merger

Oil Search on December 8 said Papua New Guinea’s (PNG) competition watchdog has approved its proposed merger with Santos.

“Oil Search Limited is pleased to announce that the condition precedent in clause 3.1(e) of the merger implementation deed in relation to clearance/approval from the Independent Consumer and Competition Commission of Papua New Guinea has been satisfied,” it said in a statement.

The deal was cleared by Oil Search shareholders on December 7 and the securities commission of PNG approved the merger on December 6.

The merger remains subject to approval from the National Court of Papua New Guinea at a hearing scheduled for December 9. If the PNG court approves the merger, it is anticipated that the deal will become legally effective on December 10. Oil Search will then apply for its shares to be suspended from trading in PNG and Australia with effect from the close of trade on December 10.

After the completion of the deal, Oil Search shareholders will own approximately 38.5% of the merged entity and Santos shareholders will own about 61.5%.