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.
Continue Reading Below
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 email@example.com
(END) Dow Jones Newswires
August 21, 2017 03:43 ET (07:43 GMT)