Denmark’s A.P. Moller-Maersk and Dong Energy are reportedly in talks to merge their oil and gas operations.
Reuters reported on Monday, citing sources familiar with the matter, that the deal would create a business worth over $10 billion, including debt. The news agency also informed Maersk is working with Bank of America while J.P. Morgan is assisting Dong.
Maersk said in September it was working to split the company into two separate entities – one focused on shipping and logistics and the other on oil and gas sector – with an aim to find solutions for future for the oil and oil related businesses within two years.
Dong Energy recently said it was rethinking its oil and gas business, looking to focus on renewable energy. The company also stated it was no longer considering oil and gas as a long-term strategic commitment. Dong hired a banking and financial services company J.P. Morgan to conduct a preliminary market assessment for its oil and gas business.
Reuters quoted a spokesman for Dong as saying: “We are in the very early stages of the sales process. There will be no sale before the end of the year and it is far too early to speculate over timing and indeed potential buyers.”
Offshore Energy Today Staff