Executive Briefings

Maersk Separates Struggling Shipping, Energy Operations Into Separate Companies

Danish shipping and oil conglomerate A.P. Moller-Maersk plans to separate its businesses into transport and energy divisions in a bid to better tackle the problems facing its struggling businesses.

The focus will be on establishing an integrated transport and logistics company, while its oil and oil-related business will either individually or in combination be separated from the company, Maersk said.

Transport & Logistics will consist of Maersk Line, APM Terminals, Damco, Svitzer and Maersk Container Industry based on a one-company structure with multiple brands. The mission of these businesses is to enable and facilitate global supply chains and provide opportunities for customers to trade globally.

Chairman of the Board Michael Pram Rasmussen says: “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. This will increase the strategic flexibility by enhancing synergies between businesses in Transport & Logistics, while ensuring the agility to pursue individual strategic solutions for the oil and oil-related businesses.”

The 112-year-old group said in June it had asked new chief executive Soren Skou to look into potentially breaking up the group, whose shipping and energy operations are both struggling.

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The focus will be on establishing an integrated transport and logistics company, while its oil and oil-related business will either individually or in combination be separated from the company, Maersk said.

Transport & Logistics will consist of Maersk Line, APM Terminals, Damco, Svitzer and Maersk Container Industry based on a one-company structure with multiple brands. The mission of these businesses is to enable and facilitate global supply chains and provide opportunities for customers to trade globally.

Chairman of the Board Michael Pram Rasmussen says: “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. This will increase the strategic flexibility by enhancing synergies between businesses in Transport & Logistics, while ensuring the agility to pursue individual strategic solutions for the oil and oil-related businesses.”

The 112-year-old group said in June it had asked new chief executive Soren Skou to look into potentially breaking up the group, whose shipping and energy operations are both struggling.

Read Full Article