Maersk to Split Into Two Divisions
It's oficial now. Danish conglomerate A.P. Moeller-Maersk A/S said Thursday it is splitting into two separate units - transport and energy businesses.
Denmark’s biggest company moves ahead with an historic shake-up of the conglomerate to generate growth, as it battles with the worst shipping downturn in years and a historic oil-price rout.
"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," says a press release from the company.
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.
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.
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.
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”.
The registered management of A.P. Møller - Mærsk A/S will be composed and changed as follows:
Søren Skou will continue as Group CEO of A.P. Møller - Mærsk A/S and CEO of the Transport & Logistics division,
Claus V. Hemmingsen will be appointed Group Vice CEO of A.P. Møller - Mærsk A/S effective on 1 October 2016 and CEO for the Energy division,
Jakob Stausholm will be appointed Group CFO of A.P. Møller - Mærsk A/S as of 1 December 2016. On the same date, Group CFO Trond Westlie will step down as member of the registered management and leave the Group,
Jakob Thomasen will step down as member of the registered management and CEO of Maersk Oil effective on 1 October 2016 and will leave the Group on 1 November 2016.
Kim Fejfer will step down as member of the registered management effective on 1 October 2016 and as CEO of APM Terminals effective on 1 November 2016 when he will also leave the Group.
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.
Historically the Maersk activities’ strategy and structure have always undergone changes. And these changes will continue in order to stay agile.
