Danish giant AP Møller-Mærsk is dividing its company into two, after reviewing strategic and structural options for months that will also see its CEO, Jakob Thomasen, make his exit.
Image from Maersk Flickr.
AP Møller-Mærsk will become an integrated transport and logistics company with digitalized and individualized customer solutions. The second part of the puzzle will be an energy division, focusing on oil and oil-related businesses, and on optimizing and strengthening its strong position in the Danish, British and Norwegian parts of the North Sea.
In June, the company’s board of directors had management 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 maximizing shareholder value with the long-term view.
The review resulted in the energy division to 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, where it can leverage its strong capabilities within subsurface modelling, well technology and efficient operations. Maersk Oil will also aim to strengthen its portfolio through acquisitions or mergers, the company said.
Maersk Drilling, Maersk Supply Services, and Maersk Tankers will continue to optimize their market position and operation with the existing fleet and order book.
With the change, the company’s board of directors said it expects the oil and oil related businesses to require different solutions for future development including separation of entities individually or in combination from AP Møller - Mærsk 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.
As for, AP Møller-Mærsk will focus on new product offerings, digitalized services and individualized customer solutions, and consist of Maersk Line, APM Terminals, Damco, Svitzer and Maersk Container Industry
“The industries in which we are operating are very different, and both face very different underlying fundamentals and competitive environments,” Michael Pram Rasmussen, chairman of the board said. “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 and logistics, while ensuring the agility to pursue individual strategic solutions for the oil and oil related businesses”.
The new direction of the company will also see a management shake up that will see three executives step down.
Søren Skou will continue as group CEO of AP Møller - Mærsk and CEO of the transport and logistics division.
Claus V. Hemmingsen will be appointed group vice CEO of AP Møller - Mærsk effective on 1 October 2016 and CEO for the energy division.
Jakob Stausholm will be appointed group CFO of AP Møller - Mærsk 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.