Maersk buys Dutch shipping rival P&O Nedlloyd
11 May 2005, AMSTERDAM — Danish freight shipping company A.P. Moeller-Maersk has agreed to offer EUR 2.3 billion in cash to buy Dutch rival P&O Nedlloyd.
11 May 2005
AMSTERDAM — Danish freight shipping company A.P. Moeller-Maersk has agreed to offer EUR 2.3 billion in cash to buy Dutch rival P&O Nedlloyd.
P&O Nedlloyd's board will support the intended offer of EUR 57 per share, which is 40.6 percent more than the 9 May price prior to the announcement of takeover talks on Tuesday, the companies said in a joint statement.
Maersk owns the world's largest container shipping line, Maersk Sealand and said the industry needed to consolidate. Rising freight rates have been reported in the past few years.
The takeover of P&O Nedlloyd will boost Maersk's ships numbers and strengthen its leadership of the industry, Reuters reported on Wednesday. P&O Nedlloyd is the world's fourth largest shipping company.
Shares in P&O Nedlloyd rose 21.5 percent on Tuesday after it was revealed it was in talks with Maersk. The rise continued on Wednesday, jumping 13 percent by midday.
Both companies expect few problems with competition authorities.
Maersk Sealand has 400 container ships and a market share of 12 percent. The takeover of P&O Nedlloyd with 156 ships will increase that share to 18 percent.
P&O Nedlloyd said 1,500 jobs will be cut within three years of the takeover. It hopes most of the jobs will go via natural attrition.
[Copyright Expatica News 2005]
Subject: Dutch news