Total buys Maersk Oil at $ 7.45 bln

Baku. 21 August. REPORT.AZ/ 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. Report informs referring to the Danish company.

Danish company A.P. Moller-Maersk is selling its Maersk Oil division to Total 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 (97,5 mln. shares which is 3,76%) 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.

Notably, in 2016, Maersk Oil's daily production was 313,000 barrels.

The company's production assets are located in Denmark, the United Kingdom, Norway, Kazakhstan, the Gulf of Mexico and Algeria, at the same time company carries out geological exploration in Africa, South America and the Middle East.