One of Australia largest oil and gas companies, Santos, is likely to be swallowed up by a consortium led by Middle East emirate Abu Dhabi’s national oil company in a takeover worth $30 billion.

The consortium, which includes US global private equity firm Carlyle, has lobbed a non-binding offer for all the Adelaide-headquartered company’s stock at a price of $8.89 a share, a 28 per cent premium on the last closing price of $6.96.

The takeover bid is subject to due diligence by the consortium, but Santos’ board said it intended to unanimously recommend the bid to its shareholders, subject to a favourable report from an independent assessor, unless a better offer materialised.

Shares in the company, led by chief executive Kevin Gallagher, jumped 12.6 per cent in morning trade on the Australian sharemarket.

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Speculation has been mounting for more than a year that Santos was a takeover target.

In mid-2024, reports suggested both the Abu Dhabi National Oil Company and Saudi Aramco were interested in buying Santos. About six months earlier, in late 2023, there were hints of an $80 billion mega-merger between it and Australia’s largest oil and giant producer, Woodside.

Santos’ board said it had carefully considered the consortium’s indicative proposal and decided to allow Abu Dhabi’s oil giant and Carlyle access to confidential information to conduct due diligence.

The “final offer” from the consortium follows two other bids, one on March 21, pitched at $8 a share, and the other on 28 March, which offered $8.60 for its scrip.