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Maersk agrees to sell oil unit to Total in $7.45 billion deal
August 21, 2017 / 7:13 AM / a month ago

Maersk agrees to sell oil unit to Total in $7.45 billion deal

FILE PHOTO - Crew members look out from the world's largest container ship, the MV Maersk Mc-Kinney Moller, as it berths during its maiden port of call at a PSA International port terminal in Singapore September 27, 2013. REUTERS/Edgar Su/File Photo

COPENHAGEN (Reuters) - Denmark’s A.P. Moller-Maersk (MAERSKb.CO) said Monday it had agreed to sell its oil and gas division, Maersk Oil, to French oil major Total SA for $7.45 billion.

Under the deal, Total will transfer 97.5 million shares, or about 3.8 percent of its equity, to Maersk, and will also take on short term debt of $2.5 billion, the company said.

Maersk said it plans to return a “material portion of the value of the received Total S.A. shares” to shareholders in 2018 and 2019 in the form of extraordinary dividend, share buyback or distribution of shares in Total.

The deal is expected to close in the first quarter of 2018.

Maersk Oil has majority of its assets in the North Sea.

Reporting by Jacob Gronholt-Pedersen, editing by Louise Heavens

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