Australia-based Woodside Energy has called off its attempt to reach a merger agreement with Oil Search Limited.
Woodside said on Monday that it has withdrawn its proposal to merge the businesses and will not pursue any alternative transactions to combine the firms.
In September, Oil Search rejected an all stock takeover bid from Woodside slated to be worth about $8 billion.
Woodside offered one share for every four shares of Oil Search, equivalent to a 14 percent premium over Oil Search’s closing price on September 7.
Oil Search, an oil and gas exploration and development company focused on Papua New Guinea, said its board unanimously decided to reject Woodside’s non-binding proposal.
“Following a detailed evaluation of the proposal, the board has concluded that the proposal is highly opportunistic and grossly undervalues the company,” Oil Search said in September.
Woodside said in September that it was “surprised and disappointed that the board of Oil Search has rejected the proposal without meeting with Woodside to understand the benefits of the opportunity or to negotiate the terms of a possible merger.”
Oil Search Limited produced 19.27 million barrels of oil equivalent in 2014 and has proved plus probable plus best estimate of contingent oil resources of 173.6 million barrels and 5.811.6 trillion cubic feet of gas.
The company holds a 29 percent stake in the PNG Liquefied Natural Gas Project.