World | Europe

September 22, 2016

Maersk to Split Group Into Separate Transport, Energy Companies

A.P. Moeller-Maersk A/S will split into separate transport and energy businesses as Denmark’s biggest company moves ahead with an historic shake-up of the conglomerate.
Maersk Line

Maersk Line

Maersk, owner of the world’s biggest shipping firm, will become a transport and logistics company, the Copenhagen-based group said on Thursday. Oil and oil related businesses, “either individually or in combination,” will be separated from the group, it said.

Goldman Sachs characterized the move as a “clear opportunity to unlock value,” in a note to clients. “Refocusing capital and management attention on transport, where we believe Maersk has clear competitive advantages, should lead to higher growth and return on capital in the medium term.” Exiting oil could also “unlock significant” sum-of-the-parts value, Goldman said.

“We continue to see Maersk’s valuation as attractive, failing to reflect either ongoing shipping market repair or the increasingly evident scope for unlocking SOTP value,” Goldman said.

Soren Skou, the group’s chief executive officer since July 1, said the container line business will now focus more on acquisitions and rely less on ordering new ships to achieve growth. “There are already enough ships in the world,” he said at a press conference after the announcement. The company has also indicated it’s getting more client requests since the recent collapse of Hanjin Shipping Co.

The shares rose as much as 4.2 percent and traded 1 percent higher at 10,000 kroner as of 12:04 p.m. in Copenhagen, bringing this year’s gains to 11 percent. Maersk also said its chief financial officer, Trond Westlie, will be replaced by Jakob Stausholm, who’s currently in charge of strategy at Maersk Line. The switch was part of a broader management reshuffle.

Fearnley Securities recommends buying the shares, which it predicts will reach 11,500 kroner a piece, in part based on an assumption that the new structure will generate about $600 million in cost synergies over the next three years. Skou said the company estimates that the transport business will achieve synergies that will add 2 percentage points in return on invested capital, equivalent to $600 million a year.
Chairman Michael Pram Rasmussen first revealed Maersk was assessing the merits of splitting up the group on June 23, the same day he dismissed Nils Smedegaard Andersen as CEO. The prospect of a structural reorganization sent the shares up as much as 12 percent on the day, as most investors expect the company to be worth more once its different parts are freed from the conglomerate structure.

Maersk’s board expects the oil and oil related businesses “will require different solutions for future development including separation of entities individually or in combination from A.P. Moeller-Maersk in the form of joint-ventures, mergers or listing.” A solution is expected to be found within 24 months, it said.

Under Andersen, the 112-year-old group sold off a number of units that weren’t related to oil or shipping, including a stake in Danske Bank A/S and shares in a supermarket chain. But he had repeatedly defended the conglomerate structure, arguing the various business units benefited from the synergies that the group structure brought with it.

 

Text by Bloomberg
Tags:
maersk
 

Tags Cloud

20102011accaaccidentaccidentsADSUadvertisingafghanistanAfrAsiaafricaagalegaagreementagricultureagroAHRIMAIairair asiaair australAir Franceair madagascarair mauritiusairasiaAirlinesairportairway coffeeAlbionalgeriaalibabaalteoAlvaro SobrinhoamazonAmeenah Gurib-FakimAMLandroidangolaAnil BachooApollo Bramwellappappleappointmentsappsaquaculturearab townarrestArtasiaATMATOauditaudit reportaustraliaaustriaaviationawardawardsAxcel ChenneyBABagatelleBagatelle DamBAIBangladeshbankBank OnebankingbanksBar CouncilbarclaysBDObeachbeachesBeau Bassin-Rose HillbeautybeerBelgiumBelle-MareBelle-RiveBet365betamaxbettingBharat Telecombig databitcoinblue economyBlue-BayBOIboko haramBollywoodBOMbombingbookbookmakerbooksbossBotswanabpmlBPOBramer BankbrazilbrexitBritish AirwaysbudgetbuildingbusesBusinessbusiness trendsCabinetcall centresCanadacanecareercareer tipscargocarnivalcasinoCaudanCCIDCCMCCTVCEBcelebretiescelebritiescementChagoscharityCharlie HebdoCHCchilechinachromeCIELcigarettesCim FinancecinemaclashesCMTcomoroscompetitionconcertconferenceCongoconstitutional amendmentconstructioncontestcontestscontractcooperationCoronaviruscorruptioncounterfeitcoupCourtCourtsCPBCPEcreativitycreditscrisiscruise shipcruise shipsCSOCT PowerCultureCurepipecustomercustomerscustomsCVCWAcyclingcyclonedamDawood RawatdayDBMdeficitdenguedeportationdevelopmentDiego GarciadivalidoctorsdodoDomaine les PaillesDonald TrumpDPPdrug traffickingdrugsDTAADubaiDuty Freee-commercee-servicesearthquakeebeneebolaecoécolesecologyeconomicEconomic Development BoardeconomicseconomyEducationeducation abroadeducation reformEEZEgyptEIILMelectionelectionselectoral reformelectricityelon muskembassyEmiratesemirates airlinesEmtelenergyENLentrepreneurshipEnvironmentEOCEUEuroEuropeeventeventsexamexaminationexamsexpoexportfacebookfairFalcqfarmersfarmingfashionfast foodfbiFDIfeefeesferryfestivalFievre AphteuseFIFAFIFA World CupFilm Rebate SchemefilmingfilmsfinancefinancesfinancingFirefishfishingFIUFlacqFlic-en-FlacfloodFloodsflourfonction publiquefoodFootballforecastforeign workersForumFrancefraudfruitfruitsFSCFTAfuelfunnyGAARgabongadgetsgalaxygalaxy notegamblinggame of thronesgamesgasgazaGDPGermanyghanaGlobal BusinessgolfGoodlandsgoogleGorah Issac casegovernmentGRAGrand Baygrand-baieGrand-BassinGrand-Gaubegreecegreengreen energygrippeGTUH1N1hackershajjhamashappinessHawaiihawkershealthhealthcareHeritage Cityhi-techhigher educationhighlandshistoryHolcimholidaysHong Konghorse raceshorse racingHospitalhotelhotel businesshotelshowhow toHRHRDCHSBCHSCHSC ProhtchungaryhuntingHusein Abdool RahimIBAIBLICACICTICTAID cardiframacillegal fishingillegal migrationillegal workersIMFimportindiaIndian OceanIndian Ocean Island GamesIndonesiainflationinfluenzaInfographicsinfrastructureinnovationinnovationsinsuranceinterest rateinternetinterpolInterviewinterview tipsinvestinginvestmentinvestmentsIOCIORECiosiPadiphoneIPOiraniraqirelandIRSISISislamicisraelITItalyjapanJean-Claude Bastos de MoraisJellyfishJewelleryJin FeiJIOIjobjobsjockeyjournalismJulian AssangeKailash TrilochunKenyakitesurfingKPMGkreolla buttelabourLafargelandlandslideLarsen & ToubrolawlawslayoffsLe MorneleadershipleakLepeplexpressliberiaLibyalifeloanloanslocal governmentlogisticslondonlotteryLottotechLRTLufthansalycheeMadagascarmade in morisMahebourgmalariamalaysiamalaysia airlinesMaldivesMalimallmanagementmanagement tipsmanufacturingmarketmarketingmarketsMauBankMauritiansmauritiusMBCMCBMCCIMDFPMeatmeccamediaMedical CouncilMedical tourismmedicamentsmedicineMedineMedPointmeetingMEFMegh PillayMESMeteoMetro ExpressMEXAmexicoMFAMGIMHCmichaela harte caseMicrosoftMIDMidlandsMIEmigrationmigration crisisminimum salaryminimum wagemiss mauritiusmistakesMITDmlMMMmobilemobile phonesMokamoneymoney launderingmonkeyMont-ChoisyMoody’sMoroccomotivationmoviesMozambiqueMPAMPCMPCBMPLMQAMRAMSBMSCMSMMTMTCMTPAMusicMV BenitaNad SivaramenNaïadeNamibiaNandanee SoornackNarendra ModinasanatureNavin RamgoolamNavind KistnahNCBNCGNDUNECnefNegative Income TaxNelson MandelaNeotownNepalnetherlandsnetworkingNew Mauritius Hotelsnew zealandNGONHDCNICNICHLNigerianight clubsNitin Chinien caseNobel Prizenokianorth koreaNRBNTANTCNWCCNWECOCDEoceanocean economyofofficialsoffshoreoilOlympic GamesOmega ArkOmnicaneoniononlineopinionOppositionorangeoscaroscar pistoriusOUMoutsourcingPakistanpalestinePamplemoussesPanama Paperspandit sungkurParadise PapersparliamentPaul BérengerpensionpensionspeoplePereyberepermis de travailPhilippinesPhoenix Beveragesphonespicture of the daypillspiracyplageplagueplanPlanet Earth InstitutePMPMEPMOpmsdPNQpokerpolicepoliticspollutionPonzi SchemeportPort LouisPort-LouispostPovertyPRPravind JugnauthPRBpresentationpresentation tipspresidentpricepricesprisonproblemprofitprojectprojectsprostitutionprotestspsacPSCpsychologyPTRpublic functionpublic servicepwcQatarQuantum Globalquatre-bornesquotesrainsRajindraparsad SeechurnRakesh GooljauryransomwareratesratingratingsRavi Yerrigadooreal estaterecallsreformreformsrefugeesreligionrentrepo ratereportRESRésidence Barklyrestaurantrestaurantsresultresultsresumeresume tipsretailReunionrevenuericeRiche-TerreriseRiviere-du-RempartRiviere-Noireroadsroche-boisRoches-Noires caseRodriguesRogersrose-belleRose-HillrosewoodRoshi BhadainRum and SugarRundheersing BheenickrupeeRussiaRwandasafetySAJsalariessalarysalesalessales tipssamsungsanctionssaudi arabiaSBIsbmSCscamscandalSCBGscholarshipscholarshipsSchoolschoolsscienceseasecuritySEMSEMDEXSenegalSeychellesShakeel MohamedShanghaisharksshootingshoppingshopping fiestashopping mallshopping mallsshowShowkutally SoodhunSICsicomSierra LeonesingaporeSITskillssmall businesssmart citysmartphonesSMeSME MauritiusSMEDASMFsmmsnapchatSobrinho casesocialsocial mediasocial networks & messengersSofitelsoftwaresolar energySomaliasonysouthsouth africaSouth China Seasouth koreasouth sudanspainsponsorshipsportSportsSquatterssri lankaSSRStar KnitwearstartupsstatisticsstatsSTCstockstock marketstocksstrategystreet vendorsStressstrikestudystudy abroadstylesubventionsuccesssuccess storysugarsugar canesummitSun ResortsSun Tan caseSunkai caseSunnystarssurveySwanSwedenSwitzerlandsyriaTAtabletsTaiwanTanzaniataxtax fraudtax heaventaxesTbillsteateacherTeachersteamTECtechnologytelecomtendertendersterrorismtertiarytextilethailandthethefttimetime managementtipstototaltourismtoystradetrade feetradingtrainingtrainingstransporttraveltrendsTrioletTripAdvisorTrou-aux-BichestsunamitunaTunisiaTurfTurkeyturkish airlinesTVtwittertyphoonUdMUgandaukukraineununemploymentUNESCOunionsuniverseuniversityuomUSUTMvacanciesvacancyVacoasVacoas Popular Multipurpose Cooperative SocietyVacoas-PhoenixVanilla Islandsvarma caseVATVeekram BhunjunvegetablesVerizonvideoVideo of the Dayvirtual realityvisaVishnu Lutchmeenaraidoovisitvivo energyvolcanowasteWaterWaterparkWeatherwest africawhatsappWhitedot Casewi-fiwikileakswindowsWMAwomenworkwork abroadworkersWorkshopWorldWorld Bankwriting tipsWTOXavier-Luc DuvalyahooYasin DenmamodeyemenYEPYerrigadoogateyoutubeZambiazimbabwe
Mauritius
© 2010-2020 mega.mu