The Danish shipping group A.P. Moeller Maersk split in two separate units, dividing its transport and logistics business from the oil and energy divisions.
The decision was taken after several weeks of discussions for restructuring, which will ensure the growth and development of the company during a downturn in the global shipping industry, and falling oil prices. The transport and logistics division will remain part from the group and will continue to be the world’s largest container shipping operator in terms of tonnage. On other side, the future of the energy units will either remain part of A.P. Moller-Maersk or will form a joint ventures or mergers with other companies and list on the Stock Exchange.
“The Board of Directors expect that the oil and oil related businesses in A.P. Moller-Maersk will require different solutions for future development including separation of entities individually or in combination from A.P. Moller-Maersk in the form of joint-ventures, mergers or listing. Depending on market development and structural opportunities, the objective is to find solutions for the oil and oil related businesses within 24 months”, said the Danish shipping group A.P. Moeller Maersk in official statement. “Maersk Line will grow market share organically and through acquisitions”, added the statement.
The reorganization of the group A.P. Moeller Maersk happens in a recession in the container shipping industry worldwide, caused by price war between the carriers, sharp drop of freight rates and delay of the world economy. The freight rates of the carriers dropped to record low levels, barely covering the cost of fuel and operations. The crisis led to the bankruptcy of one of the largest players in the industry – the South Korean company Hanjin Shipping. On other side the group A.P. Moeller Maersk was pressured by the falling oil prices.
“The industries in which we are operating are very different, and both face very different underlying fundamentals and competitive environments. Separating our transport and logistics businesses and our oil and oil related businesses into two independent divisions will enable both to focus on their respective markets”, Chairman of the Board of Directors of A.P. Moller-Maersk, Michael Pram Rasmussen .”This will increase the strategic flexibility by enhancing synergies between businesses in transport and logistics, while ensuring the agility to pursue individual strategic solutions for the oil and oil related businesses”, added he.
A.P. Moller-Maersk Group is a Danish business conglomerate. The group has activities in a variety of business sectors, primarily within the transportation and energy sectors. It has been the largest container ship operator and supply vessel operator in the world since 1996. A.P. Moller-Maersk Group is based in Copenhagen, Denmark, with subsidiaries and offices in more than 135 countries worldwide and around 89,000 employees.
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