A.P. Møller – Mærsk A/S is to separate into two separate divisions: ‘Transport & Logistics’ and Energy’, making it an integrated transport and logistics company with digitalised and individualised customer solutions, following recent speculation that the company was to undergo a historic two-way company split.
As announced on June 23, 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 Maersk with the objective of generating growth, increasing agilities and synergies and unlocking and maximising shareholder value with the long-term view.
The main growth focus of A.P. Møller – Mærsk A/S going forward will be delivering best in class transportation and logistics services as an integrated Transport & Logistics company.
Oil and oil related businesses, either individually or in combination, will be separated from A.P. Møller – Mærsk A/S, with Maersk Oil set to focus on optimising and strengthening its strong position in the Danish, British and Norwegian parts of the North Sea.
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.
Michael Pram Rasmussen, Chairman of the Board, said: “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 – Focus on Growth and Synergies
Transport & Logistics will consist of Maersk Line, APM Terminals (APMT), 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 its customers to trade globally.
Managing and operating the business activities in Transport & Logistics in a more integrated manner will enable profitable growth through stronger collaboration and disciplined capital allocation.
The strategy of Transport & Logistics rests on three pillars to deliver long term profitable growth:
- Product offering and customer experience will be improved based on the combined capabilities of Maersk Line, APMT and Damco in combination with industry leading digital solutions.
- By operating as one entity, Transport & Logistics will be able to harvest synergies and optimise operations to secure the industry’s most effective and reliable network.
- Strong capital discipline and better utilisation of assets will be ensured. When making investments, acquisitions will be the preferred option.
The strategies for the individual businesses will be adjusted accordingly:
Maersk Line will grow market share organically and through acquisitions, with APMT set to focus on cost and utilisation and increase its focus on operational excellence to enhance returns and deliver improved service to existing and new third 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.
Søren Skou, CEO of A.P. Møller – Mærsk A/S, said: “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 utilisation 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.”
The new CEO of APMT will be Morten Engelstoft, currently CEO of APM Shipping Services and CEO of Maersk Tankers. Morten Engelstoft’s appointment is effective November 1, 2016.
Kim Fejfer, currently CEO of APM Terminals and Executive Board member in the Maersk Group will take up a new role related to A.P. Møller Holding A/S.