French group Total to buy Maersk Oil in $7.5 billion deal

Record ID: 907269

  • Title: French group Total to buy Maersk Oil in $7.5 billion deal
  • Date: 21st August 2017
  • Summary: LONDON, ENGLAND, UK (AUGUST 21, 2017) (REUTERS) (SOUNDBITE) (English) SIMON FRENCH, CHIEF ECONOMIST, PANMURE GORDON, SAYING: "This is a strategic call rather than a market call on M&A and what I mean about that is Maersk is looking to exit the oil and gas sector and concentrate on the shipping business and the Total purchase of those assets principally in the North Sea mak
  • Embargoed: 4th September 2017 11:17
  • Keywords: A.P. Moller Maersk Total Oil buyout cashflow shares restructuring
  • Location: COURBEVOIE/GRANDPUITS/PARIS, FRANCE & LONDON, ENGLAND, UK & UNKNOWN LOCATION
  • City: COURBEVOIE/GRANDPUITS/PARIS, FRANCE & LONDON, ENGLAND, UK & UNKNOWN LOCATION
  • Country: Various
  • Topics: Company News Markets,Economic Events
  • Reuters ID: LVA0026V3NUDP
  • Aspect Ratio: 16:9
  • Story Text: Total is buying Maersk Oil in a $7.45 billion deal which the French oil major said would boost its earnings and cash flow, and bolster its dividend prospects.
    Danish owned A.P. Moller Maersk says its selling to focus on other activities including its shipping business.
    Under the terms of the deal, A.P. Moller Maersk will get $4.95 billion in Total shares and Total will assume $2.5 billion of Maersk Oil's debt.
    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 world's top oil companies have been back on the takeover trail over the last year, helped by signs of a recovery in the oil market.
    The sale comes with Maersk in the midst of a major restructuring to concentrate on its transport and logistics businesses and separate its energy operations in the face of a drop in income.
    AP Moller Maersk shares were up 4.3 percent in early trading, while Total shares dipped 0.5 percent lower.
  • Copyright Holder: REUTERS
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