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Total's Shares Rise Over Maersk Deal

Total's Shares Rise Over Maersk DealTotal's Shares Rise Over Maersk Deal

Shares in Total rose on Tuesday on the back of upbeat analyst comments regarding the French oil major's $7.45 billion takeover of Maersk Oil. Total was up 0.8% in early session trading, among the top performers on France's benchmark CAC-40 index, Reuters reported. "The credentials of this deal and the deals in Brazil and Uganda last year suggest that Total is able to realign the portfolio in a manner that is not value-destructive," Citigroup analysts said in a research note. Over the last year, Total has expanded its holding in Uganda's Lake Albert oil project by snapping up most of Tullow Oil's stake and agreed to buy some assets in Brazil from Petroleo Brasileiro. Total's shares remain down by around 10% since the start of 2017, impacted by pressure on crude oil prices. Yet Total expects Maersk Oil—its biggest oil deal since buying Elf in 2000—to generate financial synergies of more than $400 million per year, in particular by combining assets in the North Sea.

 

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