Maersk Oil sold to France's Total

Total's US$7.4bn tilt for Maersk expected to deliver significant North Sea synergies

Total's US$7.4bn tilt for Maersk expected to deliver significant North Sea synergies

Total, among the world's seven largest "supermajor" oil producers, will buy 100 per cent of Maersk Oil for $7.45 billion in shares and debt, making it the second-largest operator in the north-west Europe offshore region.

The agreement involves the transfer of $4.95bn in 97.5 million Total shares (3.76 percent of the company) to Moller Maersk, the Danish group selling its oil division.

As part of the deal, Maersk will receive approximately $4.95 billion in Total shares, while Total will assume $2.5 billion of short term debt to fund the remainder of the deal.

Total expects to generate synergies of more than $400 million a year starting in 2020, in particular by combing the two companies' North Sea assets.

"This transaction delivers an exceptional opportunity for Total to acquire. a company with high quality assets which are an excellent fit with many of Total's core regions", said chief executive and chairman Patrick Pouyanne. The deal should close by end-March 2018.

The Boards of both Total and A.P. Moller-Maersk have approved the transaction. Though the number of European deals so far this year stands at roughly half the level of those completed in 2016, their value has reached $16.8 billion, compared with $5.3 billion in all of 2016, according to Wood Mackenzie.

Warm temperatures, mostly sunny skies expected for eclipse
The ideal viewing weather for the eclipse fades, followed by a humid day Tuesday nearing highs in the 90s, Head said. As we alluded to above - we're still tracking some heavy duty rain, still on schedule for tonight .

Shares in Maersk jumped by 3.3 percent.

Maersk Oil's assets will bolster Total's production by 160,000 barrels a day of oil equivalent in 2018 and add significantly to the French company's portfolio of oil-and-gas reserves, an important signal of growth for investors. Norway's Statoil (and Total for that matter) made investments in Brazil's sub-salt deepwater oil fields.

"Investors should however think of these as high-margin low-priced barrels" that will recoup costs even if the price of oil falls to $30 per barrel from its current level around $50. Earlier this year, he agreed to purchase stakes in a project in Uganda from Tullow Oil Plc for $900 million and said yes to a $2.2 billion deal to buy into Brazilian oil fields and infrastructure.

Analysts from Raymond James said the value of the deal appeared fair with Total paying $13.4 per barrel of reserves - in line with what Royal Dutch/Shell paid to acquire its rival BG in the biggest oil transaction of the past decade in 2015.

Total will have the largest stake of 50.1 percent stake, followed by the Chinese CNPC with 30 percent, and National Iranian Oil Co subsidiary Petropars with 19.9 percent.

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