Total agrees deal worth US$7.45bn for Maersk Oil
French multinational oil and gas company Total SA has agreed to buy AP Moller Maersk’s Oil division in a deal valued at US$7.45bn.
The deal will see Maersk receive $4.95bn in Total shares, with the remainder of the funds coming from Total’s assumption of the shipping giant’s debt.
“In determining the best future ownership structure for Maersk Oil, it has been imperative for us that the capabilities and assets created in Maersk Oil continue to be developed, and that long-term investments are upheld, especially in the Danish part of the North Sea,” said CEO of Maersk, Søren Skou.
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Maersk has taken the step to sell the entirety of its oil portfolio to Total, with the aim of stepping out of the industry in order to focus its attention on the creation of an integrated logistics and transport company.
“The valuation of Maersk Oil and Total’s commitment is a testament to the quality and standing of Maersk Oil,” Skou continued.
“In addition, the agreement will strengthen the financial flexibility of AP Moller Maersk and free up resources to focus our future growth on container shipping, ports and logistics.”
The deal will make Total the second largest operator in the northwest Europe offshore region, the seventh largest producing region of oil and gas worldwide.
“I welcome Maersk Oil to the Total family,” commented CEO of Total, Patrick Poyanné.
“The addition of Maersk Oil’s strong capabilities and high quality assets to our business will create a leading international operator in the northwest European offshore region, making Denmark a regional anchor point for Total’s North Sea business.
“With Maersk Oil’s technical and operating competencies and Total’s experience and strong financial position, we have an exceptional opportunity to boost the combined competitive position in several core upstream regions and deliver growth, value creation and career opportunities.”
The deal is expected to close in Q1 of 2018, subject to approval from the relevant regulatory authorities.
