Denmark’s DONG Energy has today agreed to divest the entire share capital of DONG E&P to the UK’s Ineos for $1.05bn, bringing to an end speculation that its upstream business would merge with Maersk’s.
Henrik Poulsen, CEO of DONG Energy, said: “Since the decision in 2016 to divest our upstream oil and gas business, we’ve actively worked to get the best transaction by selling the business as a whole, getting a good and fair price for it and ensuring the optimal conditions for the long-term development of the oil and gas business. With the agreement with Ineos we’ve obtained just that. The transaction completes the transformation of DONG Energy into a leading, pure play renewables company.”
Last year Maersk and DONG Energy had held discussions about merging both of their oil divisions.
Maersk continues to seek an exit from its upstream commitments as it seeks to be a pure container player.