COPENHAGEN: On March 2, Denmark’s energy regulator finally approved Total’s purchase of Maersk’s oil division, bringing an end to the Danish conglomerate’s energy business after 56 years.
The sale of Maersk Oil to French energy giant Total was first announced in August 2017, but had been stuck in limbo as the companies awaited a green light from the Danish Energy Agency. The companies now expect the $7.45bn deal to close by the end of the quarter.
“As part of the agreement, Total will take over Maersk Oil’s organisation portfolio, obligations and rights with minimal pre-conditions,” Maersk revealed in a statement.
en the deal was first announced, Total said the acquisition would make it the second largest operator in Northwest Europe, second only to China National Offshore Oil. The deal comes as Total, the world’s fourth largest oil company in terms of market capitalisation, continues to aggressively expand its global acquisitions and exploration activities, having recently established new projects in Lebanon, Iran, Libya, Brazil and Angola.
The sale, on the other hand, is part of a four-part liquidation of Maersk’s energy assets. The Danish conglomerate sold Maersk Tankers for $1.2bn at the end of last year and plans to sell off both its drilling and supply services in the near future. Despite the sale, Maersk will retain a stake in the oil market through the 97.5 million Total shares – worth $4.95bn – it will receive as part of the deal.
