REUTERS/Benoit TessierPARIS/COPENHAGEN (Reuters) - Total is buying Maersk's oil and gas business in a $7.45 billion deal which the French energy major said would strengthen its operations in the North Sea and boost earnings and cash flow. For Danish company A.P. Moller Maersk, the sale of Maersk Oil, with reserves equivalent to around 1 billion barrels of oil, fits with a strategy of focusing on its shipping business and other activities announced last year. 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. Total expects its biggest oil deal since it acquired Elf in 2000 to generate financial synergies of more than $400 million per year, in particular by combining assets in the North Sea. Total has been betting on new rather than mature fields in the North Sea and the acquisition gives it further economies of scale by making it the second largest player in the region. The deal illustrates Total's strategy of using a strong balance sheet to acquire attractive assets from competitors having emerged from the prolonged oil downturn stronger than some of its rivals. "It was time for us to do what a real oil and gas company would do in a period such as this when prices are lower and costs are down.
Similar Stories to Total Is Buying Maersk Oil In A $7.5 Billion Deal on Bing News
Feedburner, Business Insider
Mon, 08/21/2017 - 3:34am
Topics: reuters/benoit tessierparis/copenhagen reuters for danish elf chief executive patrick pouyanne reuters/alex lee alternative pouyanne ipo soren skou skou analysts jefferies ap moller maersk gmt the danish uk north sea johan sverdrup norway's statoil culzean al-shaheen qatar iran al shaheen additional sudip kar-gupta karolin schaps stine jacobsen gronholt-pedersen keith weir total north sea maersk a.p moller maersk maersk oil pouyanne maersk skou south pars jacob billion deal percent shares year gas major assets company prices attractive business field reserves boost operations energy start fields barrels recovery expected strategy majors acquire production market balance develop price
BING NEWS:
- Fueled by a Needle-Moving Acquisition, This Oil Stock Is Boosting Its Dividend by 34% and Plans to Buy Back $20 Billion of Its Stock
enough to retire all the shares it plans to issue to acquire Marathon Oil (roughly $17.1 billion in equity). The company plans to ramp up its repurchase pace following the deal from its current rate ...
11/2/2024 - 11:32 pm | View Link - Shipping Giant Maersk Records Sixfold Profit Rise
Danish shipping giant Maersk said Thursday that profits in the third quarter were six times higher than the same period last year as it maintains high prices to get trade through conflict zones.
10/31/2024 - 12:07 am | View Link - More
Welcome to Wopular
Wopular is an
online newspaper rack,
giving you a summary view of the top headlines from the top news sites.
Senh Duong (Founder)
Wopular,
MWB,
RottenTomatoes
MoviesWithButter : Our Sister Site
- "Expendables 4" Starts Shooting This Fall, Says Randy Couture at the Arnold Sports Festival more
- “Expendables 4” Gets Funding Interest from “Ip Man 3” Financier more
- "Ip Man 3" Distributor Suspected of Box Office Fraud, Parent Company Loses $200M in Market Cap more
- Yen Targets "Ip Man 4" for 2018 Release; Discusses Film with Director, Producer more
- "Ip Man 3" Shatters Expectations with $72M Opening [China Box Office] more