TORONTO, August 22, 2017 /PRNewswire/ --
Onex Busan Financial have recently commented on the recent
transaction between Total as they have agreed to acquire Maersk Oil
- the oil and gas unit of A.P Moller-Maersk for a number close to
$5 billion making this acquisition
its biggest since 1999. The acquisition is a sign of industry
consolidation and acceleration in the merger and acquisition in the
oil industry.
Maersk's share jumped 5.7% following the announcement of the
acquisition. The transaction value exceeded analysts' expectations
and recorded $7.5 billion paid
$4.95 billion of Total shares and
shouldering $2.5 billion of Maersk
Oil's debt.
Total took advantage of the three-year downturn in the industry
and followed up on their CEO's hints earlier that Total will not
shy from acquiring companies to grow their business. The deal will
help the French Oil giant to expand their business in the North
Sea, Uganda, and Brazil.
The deal will give Total about 1 billion barrels of reserve, 80
percent out of which is in the North Sea, according to a statement
from the company. It will provide them with 200 thousand barrels a
day by the year 2020 rising from the current input of 16 thousand
barrels a day.
"Even though oil prices are below $50 a barrel and traders' expectations for a weak
2018, the oil industry is cautiously optimistic, they are safe at
the current price but a fresh drop in the benchmark will affect the
dividends," said Oliver Saunders,
who is the Head of Corporate Trading at Onex Busan Financial.
Total chose to expand in the North Sea instead of joining the
fastest growing oil market, the shale oil in the U.S. because the
assets in the new market is expensive, according to Pouyanne.
Maersk will become the second largest investor in Total when
they receive their 97.5 million shares agreed on. The transaction
is subject to regulatory authorities approval, but it's expected to
close in the first 3 months of 2018.
About Onex Busan Financial
Onex Busan Financial is a comprehensive wealth management company,
providing integrated wealth management solutions.
Onex Busan Financial is a well-established, independent wealth
manager with a long history of success in meeting the needs of our
clients. With offerings that cover multiple jurisdictions around
the world, we administer and manage assets of more than
US$6 billion on behalf of more than
5,000 clients.
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