By Dominic Chopping
Norwegian oil company Det Norske Oljeselskap ASA has agreed to buy the Norwegian operations of U.S.-listed Marathon Oil Corp. /zigman2/quotes/205031829/composite MRO -2.41% for $2.1 billion in cash as it looks to bolster its capabilities ahead of planned production at the massive Johan Sverdrup field in the Norwegian North Sea.
The deal is being funded with a fully underwritten loan facility and the company has also moved to strengthen its capital base with the launch of a $500 million rights issue, details of which will be announced in mid-July.
The company expects the acquisition to go through in the fourth quarter of 2014, with the plan for development and operation of the Johan Sverdrup field scheduled for submission in February 2015.
J.P. Morgan Limited acted as financial adviser to Det Norske on the transaction.
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