Maersk Sold to Total
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21 August 2017Maersk Oil will be sold to French competitor Total in a deal which values the oil company at USD 7.45 billion.
With the sale, the Maersk Group has now begun to divest of its energy companies, a process which began when the former conglomerate was split into a transport and energy division in September 2016.
Although Danish company Maersk Oil is now in foreign hands, the company will continue to have a strong connection to Denmark.
"Total S.A. will maintain Maersk Oilís strong position in the North Sea with strong Copenhagen and Esbjerg bases and with Denmark being the operating hub for Total S.A.ís combined operations in Denmark, Norway and the Netherlands," said the Maersk Group in a press release.
Total will pay for Maersk Oil with a mix of shares and debt takeover. Altogether, the Maersk Group has received shares for USD 4.95 billion in the French oil company, corresponding to a 3.76 percent ownership share.
Total is also taking over short-term debt valued at USD 2.5 billion and closure obligations worth USD 2.9 billion. Total will thus pay a 3-percent interest rate of enterprise value from June 30 2017 until the deal is closed.
The margin for the Maersk group is expected to be USD 2.8 billion.
The deal is continent on necessary approvals and is expected finalised in the first quarter 2018.