Total buys Maersk's oil business in $7.45bn deal

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Alongside Maersk Oil's UK North Sea assets, Total will also take over its Danish and Norwegian operations.

"Maersk Oil's activities across the North Sea will become part of a leading global operator with a strong performance record and long-term growth interest in the sector".

Energy deals have picked up pace more broadly in recent months as the industry puts the worst of the slump behind it, although major oil companies have tended to be sellers.

"I welcome Maersk Oil to the Total family".

Total is a global integrated energy producer and provider, a leading worldwide oil and gas company, and a major player in solar energy with SunPower and Total Solar. Maersk Oil has been the leading operator in Denmark for nearly 50 years. Total gains access to the Johan Sverdrup discovery (8.44%) and the UK's largest gas development, Culzean (49.99%).

"Total is acquiring a deep specialist in unlocking complex reservoirs and boosting recovery factors through enhanced oil recovery techniques", Wood Mac director Valentina Kretzschmar said. In Denmark, the focus will continue to be on investing in safe, efficient growth from existing fields.

Davis Polk is representing Maersk on the deal with a team led by City corporate partner Will Pearce. Maersk Oil is the first of the four energy companies of A.P. Moller - Maersk for which a future structural solution has now been identified. It operates container vessels, tankers, supply ships, special vessels, APM terminials and oil drilling rigs.

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"In my heart and mind, this is a very hard, but right decision".

The oil division of A.P. Moller-Maersk grew out of the split from the company past year and it started 2017 by saying it was working to improve its efficiency under the reorganization by cutting about 160 positions. This gives us pride.

Brent crude, the worldwide oil price benchmark that sets prices in the North Sea region, was down 1.1 per cent to $52.13 a barrel, as traders took profits following a rally at the end of last week.

The transaction is expected to close in first quarter 2018 and has an effective date of 1st July 2017.

By 2019, Total now says its production will reach 3 million barrels a day of oil and gas-a level achieved by only a handful of private companies including Exxon Mobil Corp. and Royal Dutch Shell PLC. Shareholders could expect an extraordinary dividend, share buyback, or distribution of the Total shares Maersk will receive in the deal. TOTAL S.A. has no liability for their acts or omissions. Total would also assume $2.5 billion in debt as part of the transaction.

The short-term debt will be repaid to APMM at or shortly after closing of the transaction and the proceeds will be used by APMM to reduce debt. By adding such a portfolio of growing conventional offshore North Sea assets, we confirm our strategy for value creation of, on the one hand, playing to our core strengths in order to grow further and, on the other hand, to constantly seek to lower our break-even by delivering significant synergies.

The takeover of Maersk Oil requires Total employee representatives' shareholders' and regulatory approval.

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