Santos has made a $1.26 per share offer for the coal seam methane producer, the closing date of which was this week extended to January 31.

In a statement this morning, the Australian Competition and Consumer Commission said it also expects to announce a final decision on the proposed takeover on January 31.

The ACCC is investigating whether the takeover would reduce competition in the eastern states’ gas market and also potentially thwart the PNG gas pipeline.

It has said that one of its main concerns is that the Queensland gas market is already concentrated and the merger would only work to increase it.

It was expected to deliver its decision on December 7 but the timeline was suspended on November 23 after it requested further information from Santos.

The ACCC said Santos is yet to respond to the information request and it will now give the company until early January to respond.

At the commission's request, Santos has agreed to not acquire any QGC shares or assets during the offer period, without giving seven days' prior notice.

Santos already holds 1.9 million shares or a 3.9% stake in QGC, which it acquired the day before launching the bid.