French energy giant Total has agreed to acquire Maersk Oil for $7.45 billion. The deal will see Total pay parent company Maersk $4.95 billion in shares, as well as assume $2.5 billion of the target's debt.
The deal would make Total the second-largest operator in the Northwestern Europe offshore region, adding around 1 billion barrels of oil per day to its operations. For Maersk, meanwhile, the sale allows a shift in focus back to its core shipping business.
The move comes as energy companies continue to adjust to an oil price which has halved during the last three years. In May, for example, DONG Energy sold its upstream business to INEOS for $1.3 billion as it continues its path to become a completely renewables-focused company.