France's Total to buy Maersk Oil for $7.45 billion


France's Total to buy Maersk Oil for $7.45 billion

One of the deal's para said that Total also assumes $2.5 billion of Maersk Oil's debt.

The Danish oil and shipping giant Maersk has announced this morning that it has agreed to sell off its oil and gas assets to French oil company Total in a deal worth close to 50 billion kroner.

Total has also offered the possibility of a seat on its Board of Directors to A.P. Moller Holding A/S, main shareholder of A.P. Moller-Maersk.

Total said it expects to generate operational, commercial and financial synergies of more than $400mn/yr, in particular by the combination of North Sea assets at both firms.

Pouyanne highlighted that the acquisition significantly accelerates the group's strategy to become a 3mln barrel per day producer by 2019.

"Maersk Oil has for nearly half a century been at the forefront of the Danish oil development, been vital to A.P. Moller-Maersk and to this very day plays a decisive role in the Danish and worldwide oil and gas industry", she said.

Maersk Oil last week reported a $191 million second-quarter net profit on revenue of $1.37 billion.

Maersk shares were up 4.61% in the first 15 minutes of trading, changing hands at Dkr 13,360.

Total will take over all decommissioning obligations now amounting to $2.9 billion and will maintain Maersk Oil's position in the North Sea with strong Copenhagen and Esbjerg bases. The deal is subject to regulatory approval from relevant authorities including the Danish energy minister and competition authorities as well as required consultation and notification processes with Total's employee representatives.