Woodside just pulled its $11.65 billion bid for Oil Search

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Woodside Petroleum has withdrawn its proposal to merge with Oil Search.

In a short statement to the ASX, Woodside says it isn’t pursuing any alternative transactions to combine the businesses.

The decision comes after global oil prices crashed overnight to a six-year low.

Oil Search’s shares fell 16% to $6.31. Woodside fell 3.7% to $26.94.

In September, Oil Search called the Woodside bid “highly opportunistic” which grossly undervalued the Papua New Guinea-based oil and gas company.

Under the Woodside offer, Oil Search shareholders would have received 0.25 Woodside shares for every Oil Search share, valuing the bid at $11.65 billion.

Woodside’s vision was to create a regional oil and gas champion for both Papua New Guinea and Australia with a global portfolio of world class assets and development opportunities.

Woodside has been buying assets in a depressed market. The company bought out Texas-based Apache Corporation’s interests in the Australian Wheatstone natural gas project, plus the Balnaves oil and the Kitimat gas projects in Canada for a total of US$2.75 billion (AU$3.348 billion).