Maersk has agreed to sell Maersk Oil to Total for US$7.45bn, in the first big sale of its energy segment, as it seeks to focus on its transport businesses.
Last year, the Danish conglomerate unveiled a restructuring strategy to offload its four energy arms, with the sale of Maersk Oil representing the first major development.
On the day of the announcement, its stock rose by 5.7%, adding nearly US$2bn to its market value.
Søren Skou, CEO of AP Møller Maersk (APMM), said: “The agreement will strengthen the financial flexibility of APMM and free up resources to focus our future growth on container shipping, ports and logistics.”
APMM will be paid via 97.5m shares in Total, comprising 3.76% of the French company and valuing US$4.95bn.
Furthermore, Total will assume a short term debt of US$2.5bn via debt push down from APMM into Maersk Oil.
It will also pay an interest of 3% per annum of the enterprise value from June 30, 2017, until the closing of the transaction whilst taking over all decommissioning obligations currently amounting to US$2.9bn.
The short term debt will be repaid to APMM at or shortly after closing of the transaction and the proceeds will be used by APMM to reduce debt, Maersk noted in a statement.
The deal is expected to be completed during the first quarter of 2018, subject to regulatory approvals from authorities including the Danish minister of energy, utilities and climate.