Create a free Manufacturing.net account to continue

Report: Danish Companies Considering Oil And Gas Merger

The operations would reportedly be worth about $10 billion, including debts, when combined.

(Image credit: AP/Moller Maersk)
(Image credit: AP/Moller Maersk)

Two Danish companies are reportedly discussing a merger of their oil and gas businesses
amid continued low oil prices.

Reuters reports that A.P. Moller-Maersk and DONG Energy are again in talks about combining those operations.

Maersk originally explored a purchase of DONG's oil and gas holdings last year. Those talks fell apart, but analysts told the publication that a merger between the two could work.

The operations would reportedly be worth about $10 billion, including debts, when combined.

DONG said earlier this month that it hoped to sell its oil and gas operations in order to focus on energy from offshore wind farms. Many energy companies, however, are attempting to sell assets due to a prolonged slump in oil prices.

Maersk, the Danish conglomerate, said earlier this year that it would split its energy and transportation businesses.

Maersk Line, the world's largest ocean container shipper, is reportedly interested in rival Hamburg Sud should its parent company put it up for sale.

The ocean freight industry, however, also continues to struggle amid a downturn in global trade and a glut in cargo capacity.

More in Energy