Total Buys Maersk Oil for $4.95 Billion
August 21 2017 - 2:58AM
Dow Jones News
By Dominic Chopping
Total SA has agreed to acquire Danish conglomerate A.P.
Moeller-Maersk A/S's Maersk Oil unit for $4.95 billion, concluding
a review process that started over a year ago as the group looked
to combat one of the worst shipping downturns and a historic
oil-price rout.
In statements Monday, the companies said Total will also assume
$2.5 billion of Maersk Oil's debt. Under the deal, Maersk will
retain an interest in the sector by receiving 97.5 million shares
in the French energy group, equal to approximately 3.76% of
Total.
Total will take over all decommissioning obligations currently
amounting to $2.9 billion and will maintain Maersk Oil's position
in the North Sea with strong Copenhagen and Esbjerg bases. Denmark
will be the operating hub for Total's combined operations in
Denmark, Norway and the Netherlands.
Maersk Oil last week reported a $191 million second-quarter net
profit on revenue of $1.37 billion.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
August 21, 2017 03:43 ET (07:43 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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