A state-owned Middle Eastern oil company has made a $36 billion takeover bid for the state's largest company, Santos. But the state government has threatened to use recently passed laws to intervene if it believes the deal isn't in the interests of South Australians.
00:00A new track for a South Australian mining giant.
00:06BHP will use rail instead of trucks to transport copper from its mines in Far North SA to Adelaide.
00:15Under a $1.5 billion deal with rail company Horizon that'll save 11,000 road train trips each year.
00:23This translates to safer roads for our families, communities and a significant reduction in emissions.
00:29As BHP looks to the future, another big name in Australian energy and resources is looking offshore.
00:36Santos telling the Stock Exchange it's received a takeover bid from a consortium led by XRG, an arm of the state-owned Abu Dhabi National Oil Company.
00:47The Santos board has recommended shareholders approve the proposal, which includes keeping its headquarters in Adelaide.
00:53But there's a long way to go before a deal is done.
00:56Both the state and federal governments have mechanisms to block the sale.
01:01We've got legislation which puts us at the table.
01:05That means we're going to use that legislation.
01:08And if the deal is not in the interest of South Australians, the South Australian government will say so and act accordingly.
01:15The proposal also subject to the green light from the Foreign Investment Review Board and the Australian Securities and Investment Commission.
01:23People will have a view. I welcome people expressing their view.
01:26I'm unable to because I may have to make a decision on this.
01:30At some stage it would be a big decision.
01:32Analysts are less guarded about the prospect of losing another mining giant offshore.
01:37We've already got an energy sector that's highly concentrated by foreign ownership.
01:42This will only add to that.
01:44International investors eyeing lucrative resources in the hope of big profits.
01:53We've also identified this as well as откandously.
