Australia's second-largest gas producer Santos said on Monday it intended to support an all-cash $18.7 billion takeover bid from an international consortium led by Abu Dhabi's National Oil Company (ADNOC),

The South Australian government has warned that any takeover of domestic oil and gas giant Santos by the Abu Dhabi National Oil Company must preserve the state’s economic interests, saying it has “levers” it can pull as the UAE behemoth closes in on control.

Abu Dhabi's state-owned oil company and sovereign wealth fund have teamed with U.S. private equity firm Carlyle to make an $18.7 billion takeover bid for listed Australian energy company Santos. Why it matters: It would be one of the largest takeovers ever in Australia,