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Maersk set to get even bigger

48844 Views 56 Replies 13 Participants Last post by  hkskyline
From CPH Post:

Container company Maersk Sealand is offering DKK 17 billion for Dutch P&O Nedlloyd. The merger would create the largest container line in history

Shipping giant A.P. Moeller-Maersk offers DKK 17 billion in cash to buy Dutch rival P&O Nedlloyd, in a move that would make it history's biggest container line.

Maersk, which owns the world's largest container shipping line, Maersk Sealand, said the industry needed to consolidate and that it needed more ships to continue to grow.

"There are two ways to grow: organically or via acquisitions," A.P. Moeller-Maersk CEO Jess Soederberg told Reuters. "With the current lack of ship capacity we would not be able to grow organically within the next three to four years."

Maersk Sealand already boasts the title of the world's largest container line, with more than 300 vessels and a total capacity of 750,000 20-feet containers. P.O. Nedlloyd has 156 vessels and a container capacity of 428,000.

A merger would result in the biggest container shipping company in history, more than double the size of its main contender, Mediterranean Shipping Co.

The Dutch parent company Royal P&O Nedlloyd is among the world's four largest container companies. It's board of directors said they recommended Maersk Sealand's offer, which will be officially placed in June, after a due diligence report has been issued on the Dutch company.

A takeover would also be dependent on at least 70 percent of shareholders in P&O Nedlloyd accepting the offer, as well as on the approval of competition authorities.

"This proposed offer represents a significant premium to our share price. I sincerely believe this proposal is in the best interest of both our shareholders and our employees," P&O Nedlloyd Chairman Andrew Land said in a statement.

P&O Nedlloyd said the takeover would lead to 1,500 job cuts.
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$3bn Danish-Dutch shipping deal
Wednesday, May 11, 2005 Posted: 3:41 AM EDT (0741 GMT)

Maersk owns the world's largest container shipping line, Maersk Sealand.

AMSTERDAM, Netherlands (Reuters) -- Danish shipping giant A.P. Moeller-Maersk will offer 2.3 billion euros ($3.0 billion) in cash to buy Dutch rival P&O Nedlloyd, solidifying its position as the world's top container line.

P&O Nedlloyd will back the intended offer of 57 euros per share, which represents a 40.6 percent premium over its May 9 price before the tie-up talks were announced on Tuesday, the companies said in a joint statement on Wednesday.

"I think the market will be pleased with the bid but it's another beautiful, undervalued company disappearing from the exchange," one Amsterdam-based trader said.

"The price is good -- we figured anything above 50 (euros) was positive."

Maersk, which owns the world's largest container shipping line, Maersk Sealand, said the industry needed to consolidate and that it needed more ships to continue to grow.

"There are two ways to grow: organically or via acquisitions," A.P. Moeller-Maersk Chief Executive Jess Soederberg told Reuters.

"With the current lack of ship capacity we would not be able to grow organically within the next three to four years," he said.

The offer does not include P&O Nedlloyd's planned 1.00 euro 2004 dividend.

Maersk commands a market share of over 12 percent of global container traffic with almost 400 ships, but its market share fell slightly last year as it did not have enough vessels. P&O Nedlloyd has 156 ships.

"This proposed offer represents a significant premium to our share price. I sincerely believe this proposal is in the best interest of both our shareholders and our employees," P&O Nedlloyd Chairman Andrew Land said in a statement.

The value of the deal confirmed an earlier Reuters report.

The companies said they would iron out the takeover details over the next few weeks and expect Maersk to launch the offer next month.

P&O Nedlloyd said the takeover will lead to 1,500 job cuts.

The Dutch company also reported a first-quarter operating profit of $74 million, up from $21 million in the year-ago period, and forecast that the full-year figure would reach at least $550 million. Revenue rose 16 percent to $1.7 billion.

"P&O Nedlloyd is a good match and will complement our business well," Maersk's Soederberg said. "The company has been through a successful turn-around and is a better company now than it was one or two years ago. Its value has therefore also increased."

Shares in P&O Nedlloyd, with a market value of about $2.5 billion, hit an all-time high of 51.05 euros on Tuesday and closed up 21.5 percent after the two companies confirmed talks about Maersk's takeover of its smaller rival.

The Maersk group, which also pumps oil in the North Sea and runs supermarket chains and an airline, posted net profits of 18.4 billion Danish crowns ($3.18 billion) in 2004 on total sales of 166 billion. The Danish conglomerate has a market capitalization of around $40 billion.

According to industry analyst Alphaliner, a combined P&O Nedlloyd and Maersk would have a global market share of 17.7 percent, more than twice the size of the nearest competitor.

P&O Nedlloyd Chief Executive Philip Green said he did not expect the deal to face large hurdles in receiving backing from European Union regulators.

"We will certainly not take it for granted, but I would be very surprised if the EU had any significant concerns," he told Reuters.

Maersk controls 44 pct of P&O Nedlloyd
Wed Jun 29, 2005 09:41 AM BST
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COPENHAGEN (Reuters) - Ports and shipping group P&O (PO.L: Quote, Profile, Research) will sell its 25 percent stake in Dutch shipper P&O Nedlloyd to two banks acting for Denmark's A.P. Moeller-Maersk, taking the Danish group's share of its Dutch rival to over 44 percent.

Maersk (MAERSKb.CO: Quote, Profile, Research) said on Wednesday Danske Bank (DANSKE.CO: Quote, Profile, Research) and Nordea (NDA.ST: Quote, Profile, Research) would buy 15 and 10 percent stakes respectively from P&O for 571 million euros (379 million pounds) in total and later sell the shares to Maersk.

Earlier this month, the Danish group launched a 2.3 billion euro takeover offer for P&O Nedlloyd to cement its position as the world's number-one container shipper. P&O had agreed to sell its shares to Maersk when the deal was announced in May.

Maersk said it had structured an arrangement with the banks, obliging them to sell and it to buy the shares on the settlement date of the offer for P&O Nedlloyd.

"In some countries it's against the law for us to buy the shares directly. It's just a few countries, but we have taken that into consideration," said Maersk spokesman Lehd Moeller.

Moeller said Maersk now controlled around 44.1 percent of P&O Nedlloyd.

By 0810 GMT, Maersk shares were 1.7 percent higher at 59,500 crowns, outperforming the Copenhagen bourse's top-20 KFX-index , which was 1.1 percent up.

© Reuters 2005. All Rights Reserved.
Maersk gains control of 95.6 percent of P&O Nedlloyd

Fri Aug 5, 5:59 AM ET

COPENHAGEN (AFP) - Danish shipping group A.P. Moeller-Maersk said that it had gained control of 95.6 percent of Dutch shipper Royal PO Nedlloyd, all but securing the title of world leader in the global container shipping market.

The Danish group last May bid 57 euros (70.48 dollars) per share in cash for all of PO Nedlloyd's stock, but said it would retract its offer if it gained control of less than 70 percent of the company.

After the acceptance period for its bid expired on Thursday, Moeller-Maersk said that 51.5 percent of PO Nedlloyd's outstanding ordinary shares had been tendered, which added to the Danish company's current holdings of 19.1 percent and an exercised purchase option for 25 percent left it with 95.6 percent.

"This is what we hoped for and we are satisfied," Moeller-Maersk chief financial officer Eivind Kolding told AFP on Friday, adding that the company planned to remove PO Nedlloyd from the Amsterdam Stock Exchange.

"We should over the five business days next week formally accept the acquisition and indicate whether we will prolong our offer to the last group of remaining shareholders," he said.

A full takeover of PO Nedlloyd would bolster Moeller-Maersk subsidiary Maersk Sealand's position as world leader in container shipping, landing it up to 20 percent of the global container market.

The deal has already received a conditional approval from competition authorities in the
European Commission.

Following the announcement, Moeller-Maersk saw its A stock jump 0.32 percent to 61,900 kroner (10,270 dollars, 8,296 euros) a share, while its B stock rose to 62,700 kroner (10,400 dollars, 8.402 euros) a share in morning trading.

Maersk buys Kerr-McGee North Sea oil
UK utility Centrica also buys a stake in U.S. oil and gas producer's regional assets in $3.5B deal.

August 8, 2005: 6:40 AM EDT

COPENHAGEN, Denmark (Reuters) - U.S. oil and gas producer Kerr-McGee Corp. has agreed to sell its British North Sea oil and gas interests to Denmark's A.P. Moeller-Maersk and to UK utility Centrica Plc for a total of around $3.5 billion, the companies said Monday.

Kerr-McGee (down $0.08 to $81.98, Research) said it would use the expected $3.1 billion net cash proceeds to reduce debt. The North Sea activities constituted around 20 percent of Kerr-McGee's total reserves.

Shipping and oil giant Maersk said it will acquire interests in 10 oil fields with a current production of some 60,000 barrels per day (bpd), a number of smaller oil and gas discoveries as well as an exploration portfolio for $2.95 billion in cash on a debt-free basis.

Centrica will pay $567 million for interests in four fields which will add approximately 1.1 billion therms of gas and 11 million barrels of oil to its total reserves.

"The price, $10.70 per barrel, is at the high end but it is positive that Maersk is using its financial reserves and it strengthens the balance between its oil and shipping activities," said HSH Gudme analyst Stig Frederiksen.

Maersk gets a lift

The deal, Maersk's second big takeover within months, will increase the Danish group's daily North Sea oil production by around 50 percent. Maersk, the world's biggest container shipper, also pumps oil and gas in Qatar, Algeria and Kazakhstan.

"With the acquired activities Maersk Oil has established a good position for further growth in this region and elsewhere," Maersk said in a statement, adding the transaction will take effect as of July 1.

Maersk said the takeover is expected to have a modest positive effect on its 2005 result based on current oil prices.

In morning trading in Europe, Maersk shares were 2 percent, while the Copenhagen bourse's top-20 KFX-index was up 0.9 percent.

The deal comes only days after Maersk announced that shareholders with 95.6 percent of shares in Dutch container shipper P&O Nedlloyd had accepted Maersk's €2.3 billion takeover offer.

Centrica, owner of British Gas, said the takeover of interests in the Andrew, Brae, Buckland and Skene fields is part of a plan to protect itself against further energy price rises, but the acquisition was not welcomed by some analysts.

"Centrica is paying the equivalent of ... $19.35 per boe (barrels of oil equivalent) reserves, which appears to be a very high price," said Andrew Whittock at brokers Numis Securities.

The company said the gas reserves, which are expected to last around 10 years, would provide around 2 percent of British Gas needs while the oil was likely to be sold.

Centrica shares edged lower in morning trading in Europe, against a 0.4 percent lift in the FTSE-100 blue chip index.


Copenhagen, 11th August 2005

A.P. Moller - Maersk A/S is pleased to announce that the acquisition of Royal P&O Nedlloyd N.V. is being completed today. All conditions to the offer have been fulfilled and payment for the tendered shares will be made today.

Management Philip Green, Royal P&O Nedlloyd CEO, and David Robbie, Royal P&O Nedlloyd CFO, will step down. Philip Green will assist and work with A.P. Moller - Maersk A/S for a period during the integration. David Robbie has decided to leave shortly after settlement.

Eric Sisco, current Managing Director of Maersk España S.A. and Area Manager of Maersk’s Iberia and Morocco Area (Spain, Portugal, and Morocco), will assume the position as CEO of Royal P&O Nedlloyd N.V.

Commercial arrangements P&O Nedlloyd will give notice of withdrawal to specified consortia and conferences shortly. Until February 2006 P&O Nedlloyd and Maersk Sealand will continue to operate as separate shipping lines. This is to offer customers stability of network and services throughout the coming peak season, to keep services and network intact throughout this year, and to honour P&O Nedlloyd’s commitments to various conferences and consortia.

Brand name After February 2006, Maersk Sealand and P&O Nedlloyd will be branded under the new name of Maersk Line. Maersk Logistics and P&O Nedlloyd Logistics will be integrated under the brand name of Maersk Logistics.

The full integration will be completed in stages and is expected to be completed by the end of 2006.
It's absolutely wonderful.
Maersk is known as a tough, yet fair employer, I'm sure you'll love working for the company. :eek:kay:
Sy said:
Yep it's all going through, in a few weeks I will be a Maersk employee. P&O Nedlloyd have just annouced an 92% increase in profits. Maersk have got a good deal and a great company!
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