APM in the hot seat over intended deal

The intended acquisition by A.P. Moller - Maersk of Royal P&O Nedlloyd has sparked a myriad questions about the implications for customers and the industry. APM provides some answers: Why P&O Nedlloyd? Royal P&O Nedlloyd is a strong match. Like Maersk, it has a strong maritime tradition, offers logistics and trucking services, and shares similar values. There is also a need for industry consolidation in order for shipping companies to achieve economies of scale and provide the investment needed to support the long-term growth of global trade. Overall, we believe the offer is highly compelling for customers, employees, shareholders and other stakeholders of both organisations. When do you expect the transaction to close? The transaction is subject to a number of conditions including satisfactory confirmatory due diligence, regulatory approvals, and that a minimum of 70% of the shares in Royal P&O Nedlloyd have been tendered. Best case, early stages of the integration is planned to begin in August 2005 after successful closing of the transaction. Who will lead the new combined business? The management team will be announced when we can do so after closing. What will the name of the combined business be? The brand name is currently being evaluated, but we will not be able to use the P&O name. Where will the combined business be headquartered? In Copenhagen. However, we will not be centralising operations there. Maersk already operates on a decentralised basis to keep close to our customers. Therefore, we endeavour to maintain a strong presence around the world, including in Rotterdam and London. How will customers benefit from the combined business? With our combined skills and experience, and by expanding our geographical scope and improving our services, we will endeavour to offer our customers a better product. Will existing customer contracts with Royal P&O Nedlloyd be honoured? The combined business will honour all commitments. Will you withdraw vessel capacity? After closing, it will be natural to evaluate whether assets are deployed optimally. Any future changes will be made in order to provide benefits to our customers through a better and more efficient operation. Will you maintain alliance membership? In due course we will evaluate membership of various alliances.