Total To Buy Maersk Oil From A.P. Moller-Maersk For $7.45 Bln In Share, Debt

(RTTNews) - Total SA (TTA.L, TTFNF.PK, TOT) announced Monday that it has agreed to acquire E&P company Maersk Oil & Gas A/S, a unit of A.P. Moller-Maersk A/S (AMKAF.PK, AMKBF.PK), in a $7.45 billion share and debt transaction.

The Boards of both Total and A.P. Moller-Maersk have approved the transaction.

Under the agreed terms, A.P. Moller-Maersk will receive a consideration of $4.95 billion in Total shares and Total will assume $2.5 billion of Maersk Oil's debt.

Total will issue to A.P. Moller-Maersk A/S, 97.5 million of shares, based on the average Total share price on the 20 business days prior to August 21, which will represent 3.75% of the enlarged share capital of Total.

Total has also offered the possibility of a seat on its Board of Directors to A.P. Moller Holding A/S, main shareholder of A.P. Moller-Maersk.

The transaction is expected to close in first quarter 2018 and has an effective date of 1st July 2017.

The transaction is immediately accretive to both cash flow and earnings per share and delivers further growth over coming years.