New brand Maersk Line makes its entry

RAY SMUTS THURSDAY, August 11, was a momentous day for A.P.Møller-Maersk A/S – indeed for global containerisation – when the Danish shipping giant announced completion of the acquisition of Royal P&O Nedlloyd in a US$2.8 billion transaction. The distinctive RPONL name will be consigned to maritime history after February 2006, as will the name Sealand, paving the way for totally new branding as Maersk Line, and along with it, a considerably enlarged containership fleet. Also on the way out is P&O Logistics which will be integrated into Maersk Logistics. For the nest six months, both Maersk Sealand and P&O Nedlloyd will operate under their own branding and honour all existing contractual commitments and obligations though neither will ship cargo on the other’s vessels. A.P.Møller-Maersk, which had already secured 95.6% of RPONL shares at the expiry of the acceptance period on August 4, advises all outstanding shares have been declared unconditional and that shareholders who have not tendered their shares can do so up to August 23. Withdrawal P&O Nedlloyd will shortly give notice of withdrawal to specified conferences and consortia, at least two of which have already been identified – the South Africa-Europe Container Service (SAECS) and the Grand Alliance, one of the world’s biggest consortia with services in the Europe-Asia, transpacific and transatlantic trades. Philip Green will step down as CEO of RPONL, to be succeeded by Eric Sisco, current MD of Maersk Espana S.A. and area manager for Maersk’s Iberia and Morocco area (Spain and Portugal) operation. In a joint communiqué, senior Maersk executives Knud E Stubkjaer, Tommy Thomsen and Eric Sisco say: “The transaction is an exciting development for us and for the container shipping industry. The acquisition will enable the creation of a world leading container line and logistics provider aiming to offer benefits to customers, suppliers and employees (about 35 000 in all) alike.” PONL, in turn, informs customers of the benefits of the takeover, asserting: “With our combined skills and experience we will be in an even better position to provide high-quality, reliable and innovative service.” Flemming Dalgaard, managing director for Maersk Sealand in South Africa, says he is not yet in a position to offer specific comment until the South African competition authorities deliver their ruling, expected today (August 19), on A.P.Møller-Maersk’s take-over of PONL’s business activities in the country, but remains optimistic about a positive outcome.