An Abu Dhabi-led consortium has withdrawn its $30bn takeover bid for Australian oil giant Santos, sparing the federal government from making a high-stakes decision on whether to back the deal.

XRG, the investment arm of the Abu Dhabi National Oil Company, said in a statement late on Wednesday that “a combination of factors” had affected its assessment, without elaborating.

XRG had lodged a non-binding bid in mid-June before requesting a series of extensions to finalise its proposal, raising questions over whether it would proceed. It was required to submit a binding proposal by Friday.

The proposal would have put a portfolio of oil and gas assets, including large operations in Western Australia and the Cooper basin, as well as critical energy infrastructure in the eastern states, under

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