Maersk to Split Transport and Energy Businesses
Danish shipping and energy conglomerate A.P. Møller – Maersk A/S has decided to reorganise its portfolio of businesses into two independent divisions; an integrated Transport & Logistics division and an Energy division, following a three-month strategic review.
The group’s Transport & Logistics division will consist of Maersk Line, APM Terminals, Damco, Svitzer and Maersk Container Industry, based on a one company structure with multiple brands. The Energy division will consist of Maersk Oil, Maersk Drilling, Maersk Supply Service and Maersk Tankers.
Going forward, the group’s main growth focus ”will be delivering best in class transportation and logistics services as an integrated Transport & Logistics company.”
”Building on the Group’s unique position within container transport and port operations, and significant position in supply chain management and freight forwarding, Transport & Logistics will leverage its leading position through new product offerings, digitalised services and individualised customer solutions,” Maersk said in an announcement.
Board of Directors expects that the group’s oil and oil related businesses will require different solutions for future development including separation of entities individually or in combination from A.P. Møller – Mærsk A/S 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, Maersk said.
Maersk believes that this move will ensure focus on driving synergies and developing new products and services in Transport & Logistics, as well as focus on separately developing structured solutions for the company’s oil and oil related businesses.
“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,” A.P. Møller – Maersk’s Chairman of the Board, Michael Pram Rasmussen, said.