An Abu Dhabi-based group has abandoned its $36b bid for the nation’s second largest oil company less than two days before the deal was due to take place.

The XRG consortium, led by the Abu Dhabi National Oil Company, notified investors that factors such as commercial value concerns meant it was withdrawing its initial offer for Santos.

“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,” the consortium said.

Santos and the consortium could not agree to domestic gas supply or allocating risk between the parties, including the requirement that XRG would have to secure regulatory approvals.

The Australian company also expressed concerns about delay

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