As announced on 23 June 2016, the Board of Directors has tasked the management of A.P. Møller – Mærsk A/S to perform a review focusing on the strategic and structural options for the Maersk Group with the objective of generating growth, increasing agilities and synergies and unlocking and maximising shareholder value with the long-term view.
The Board of Directors expect that the oil and oil related businesses in A.P. Møller – Mærsk A/S 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.
To enable the new strategic direction the Board of Directors has decided to reorganise A.P. Møller – Mærsk A/S’ portfolio of businesses into two independent divisions; an integrated Transport & Logistics division and an Energy division. This 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 our oil and oil related businesses.
The Board of Directors continues to focus on ensuring a strong capital structure and defined key financial ratio targets in line with an investment grade rating.
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”.
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 our customers to trade globally. The strategies for the individual businesses will be adjusted accordingly.
Maersk Line will grow market share organically and through acquisitions.
- APM Terminals will focus on cost and utilization and increase its focus on operational excellence to enhance returns and deliver improved service to existing and new 3rd party customers.
- Damco and Maersk Line will collaborate to deliver new innovative customer solutions supported by significant investments into digital technology.
- Svitzer will pursue a growth strategy based on its market leading position and synergies with APM Terminals and Maersk Line will increasingly be explored.
- Maersk Container Industry will collaborate with Maersk Line on technology development and efficient production planning.
According to the company, energy will consist of Maersk Oil, Maersk Drilling, Maersk Supply Service and Maersk Tankers.
- Maersk Oil will adjust its current strategy to focus its portfolio in fewer geographies to gain scale in basins, particularly in the North Sea, where it can leverage its strong capabilities within subsurface modelling, well technology and efficient operations. Maersk Oil will aim to strengthen its portfolio through acquisitions or mergers. Further, Maersk Oil will mature existing key development projects, while keeping exploration activities and expenses at a low level. While the strategic focus will be reflected in a disciplined capital allocation, investments in strategic projects already sanctioned or under development will continue as planned.
- Maersk Drilling, Maersk Supply Services, and Maersk Tankers will continue to optimise their market position and operation with the existing fleet and order book. Additional investments in the Group’s offshore service businesses and Maersk Tankers will be limited.
Group CEO of A.P. Møller – Mærsk A/S, Søren Skou says:
“Both Energy and Transport & Logistics have strategies positioning them for growth and strategic agility. Transport & Logistics will be able to provide new and digitised world-class solutions for customers, while at the same time capture functional cost synergies and better utilization of existing assets. Energy is well positioned to leverage Maersk Oil´s expertise and gain scale in select geographies, particularly in the North Sea. Its structural agility will enable management to pursue new and different structural solutions and investment.”
Chairman of A.P. Møller Holding A/S, Ane Mærsk Mc-Kinney Uggla says:
“A.P. Møller Holding was established mainly to safeguard the long term viability of the A.P. Møller – Mærsk activities. Since then, A.P. Møller Holding has developed its considerations about the future of A.P. Møller – Mærsk. These have been given to the Board of Directors of A.P. Møller – Mærsk A/S.
Source: Maersk Line
