French energy heavyweight Total buying Maersk Oil for US$7.45B
by The Associated Press
The deal will add to the oil and gas company's assets in the North Sea, while Maersk plans to refocus on its shipping business
COPENHAGEN—French oil company Total is strengthening its position in the North Sea with the acquisition of Danish conglomerate AP Moller-Maersk’s oil business for US$7.45 billion.
The sale of Maersk Oil is part of Maersk’s major restructuring which will see it focus on its core transport and logistics arms.
As part of the deal, the company will get $4.95 billion worth of Total shares. The French company will also assume some $2.5 billion worth of Maersk Oil debt.
Chairman and CEO Patrick Pouyanne said the addition of Maersk Oil will “create a leading international operator in the North West European offshore region, making Denmark a regional anchor point for Total’s North Sea business.”
AP Moller Maersk’s share price rose 4 per cent in Monday trading, while the French energy firm was down 0.1 per cent.
