Total, a French energy firm, plans to buy Maersk Oil & Gas A/S, a wholly owned subsidiary of A.P. Møller – Mærsk A/S, in a $7.45 billion deal.
Under the agreed terms, A.P. Møller – Maersk will receive a consideration of $4.95 billion in Total shares and Total will assume $2.5 billion of Maersk Oil’s debt.
The firm said the deal will strengthen its operations in the North Sea and boost earnings and cash flow.
For Danish company A.P. Møller – Mærsk A/S, with reserves equivalent to around 1 billion barrels of oil, the transaction fits with a strategy of focusing on its shipping business and other activities announced last year.
The transaction is expected to close in the first quarter 2018.
