AP Møller – Maersk confirms takeover of P&O Nedlloyd

May 11, 2005
Author: P&S

AP Møller – Maersk this morning (11 May) confirmed reports of yesterday that it was in talks with Royal P&O Nedlloyd NV with a view to the takeover of the Dutch shipping group. This morning the Danish company said that an agreement has been reached on terms for a conditional public offer for the entire ordinary share capital in Royal P&O Nedlloyd NV.

The offer will be submitted in June 2005.

The announcement said the intended offer would be EUR 57 per share after the payment of a dividend of EUR 1 per share to Royal P&O Nedlloyd’s shareholders on 13 May 2005. The offer corresponded to a purchase price of approximately EUR2.3 Billion for the Dutch company.

The Board of Directors of Royal P&O Nedlloyd NV is recommending the intended offer.

The offer remains subject to a limited due diligence and acceptance by at least 70% of the holders of share capital in Royal P&O Nedlloyd NV.

Taking over the shares in Royal P&O Nedlloyd NV will create a unique opportunity for further development of the global container business of the two companies to the benefit of customers, employees as well as shareholders, it said.

“A combination of P&O Nedlloyd and the Maersk container business will create new and exciting opportunities in global commerce,” said Knud Stubkjaer, CEO of Maersk Sealand. “World trade is expanding and efficient supply chain management is becoming even more important for businesses. By drawing upon the best skills and experience from both organisations, we will be able to offer an even greater proposition to our customers worldwide. In addition, a combined entity will create an enhanced, more diverse and successful business.”

Andrew Land, chairman of P&O Nedlloyd said his group believed the two highly complementary businesses would achieve far more together than apart, and Philip Green the company’s CEO said the cash offer represented full and fair value for shareholders.

“At the same time we believe the combination of our two businesses will ensure that both customers and employees will enjoy the benefits of a substantially enhanced business.”

The headquarters of the combined business will be situated in Copenhagen but the group says it does not expect there to be significant negative consequences on the employment situation. The board of directors of Royal P&O Nedlloyd NV will however step down with a new board appointed and provided the offer is declared conditional it is intended that P&O Nedlloyd’s listing on the Amsterdam Euronext will be terminated.


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