The French oil giant Total will buy the Danish shipping company Maersk’s crude business for $ 7.45 billion, according to the two companies. The operation, which has been approved by the boards of directors of the two companies, will be completed in the first quarter of 2018, provided they obtain the respective good visas from the competition regulators.
“Mr. P. Moller-Maersk today signed an agreement to sell Maersk Oil og Gas to Total SA for $ 7.45 billion in a combined stock and debt transaction,” the Danish company said in a statement on its website.
According to the agency France Presse, Total will contribute US $ 4,950 million in its own shares and will assume in its accounts u $ s 2,500 million of short term debt of the Danish oil company. Thus, A. P. Moller-Maersk will receive shares representing about 3.76% of Total’s capital, which offers a site on its board of directors to the Danish company.
“Total will take over the whole organization of Maersk Oil, its portfolio, its obligations and its rights with minimum preconditions,” says the Danish in the note, adding that “the planned development schedules and investments in strategic projects will remain” .
Total, Patrick Pouyanné, president and CEO of Total, said in a statement that “the transaction to Total provides an exceptional opportunity to acquire a company with high-quality assets that are an excellent complement to many of Total’s key regions “.
“The integration of Maersk Oil’s activities will make Total the second operator in the North Sea, benefiting from important positions in the United Kingdom, Norway and Denmark”, emphasizes Pouyanné, adding that his company will benefit from synergies thanks to “the Combination of Total and Maersk’s complementary international activities in the Gulf of Mexico in the USA, Algeria, East Africa, Kazakhstan and Angola. ”
According to El Pais, the benefits of Danish society were severely affected in 2016 by the poor performance of its transport subsidiary, Maersk Line, which controls 15% of the world’s freight transport, due to the slowdown in world trade.
Last year, faced with the persistence of negative factors such as the fall in trade and low oil prices, A.P. Moller Maersk decided to undertake a deep restructuring that led him to separate transport and energy businesses.
The idea was to focus on transportation, business for the one who was born more than a century ago, and seek an outlet for the oil business. Total has given this exit, as the shipping company acknowledges in its statement.
“The agreement reinforces the financial flexibility of A.P. Moller-Maersk and frees us to concentrate our future growth in container transport, ports and logistics.” It adds that Maersk Oil is the first of the four subsidiaries involved in the restructuring for which an exit has been found. Solutions are expected to be found for drilling, supplies and oil companies by the end of 2018.
For its part, also affected by the fall in oil prices, the French is immersed in a savings plan, but did not rule out acquisitions.