Danish shipping, oil and terminal conglome[ds_preview]rate A. P. Møller Mærsk will be separated in two divisions – with ambitious plans. The management level will see some changes, too.
In June the Board of Directors had tasked the management 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. »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«, it was announced now.
The Board expects that the oil and oil related businesses »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 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.«
Chairman of A.P. Møller Holding A/S, Ane Mærsk Mc-Kinney Uggla said: »Historically the Maersk activities’ strategy and structure have always undergone changes. And these changes will continue in order to stay agile. The Holding will continue to be an active and influential owner of A.P. Møller – Mærsk activities, applying our core values and name where relevant; and as stated in the trust deed of the A.P. Møller Foundation.«
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 strategy for this unit includes »strong capital discipline and better utilization of assets«.
For Maersk Line, market leader in the global container liner business, the plans are ambitious: It »will grow market share organically and through acquisitions«, the group said. As well, Svitzer will pursue a growth strategy based on its market leading position »and synergies with APM Terminals and Maersk Line will increasingly be explored«. All in all, the estimated synergies are expected to generate up to two percentage points ROIC improvement over a period of three years. No material synergies are expected in 2016.
The business unit »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. It is planned to strengthen through portfolio through acquisitions or mergers. Additional investments in the Group’s offshore service businesses and Maersk Tankers will be limited.
The management of A.P. Møller – Mærsk A/S will be newly composed and changed: Søren Skou will continue as Group CEO of A.P. Møller-Mærsk A/S and CEO of the Transport & Logistics division. That means he will remain the responsible person for Maersk Line.
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.
The new CEO of APM Terminals will be Morten Engelstoft, currently CEO of APM Shipping Services and CEO of Maersk Tankers. Morten Engelstoft’s appointment is effective November 1, 2016.
The new CEO of Maersk Oil will be Gretchen Watkins, current Chief Operating Officer in Maersk Oil. Grethen Watkins will take up the role as CEO of Maersk Oil effective October 1 2016.
Jørn Madsen has been appointed CEO of Maersk Drilling. Jørn Madsen is currently CEO of Maersk Supply Service a role he has held since 2015. He will assume his new position after a replacement is named as CEO of Maersk Supply Service.
Christian M. Ingerslev has been appointed CEO of Maersk Tankers taking effect as of November 1 2016. Christian has since 2014 been CCO of Maersk Tankers.
