P&O Nedlloyd considers takeover interest

Container shipping giant Royal P&O Nedlloyd today said it was in talks regarding a possible takeover by Danish rival AP Moeller Maersk.

P&O Nedlloyd, which is 25% owned by ports and ferry operator P&O, said it was in discussions with Copenhagen-based Maersk about “a possible combination” of the companies.

It declined to comment further, saying it would make more announcements as appropriate.

“There can be no certainty as to whether these discussions will result in an offer being made by AP Moeller Maersk for Royal P&O Nedlloyd,” the latter said in a statement.

Rotterdam-based P&O Nedlloyd, which has its operational headquarters in London, is understood to be conducting the talks with Maersk’s container subsidiary, Maersk Sealand.

Maersk is believed to be interested in buying P&O Nedlloyd to expand and cut costs before rising freight rates start to decline again as shipping companies expand their fleets.

Maersk employs more than 60,000 people at offices and sites in more than 125 countries.

Euronext-listed P&O Nedlloyd, which was created following the merger of P&O Containers and Nedlloyd Lines in December 1996, runs a modern fleet of 156 ships calling at 217 ports in 99 countries. Its turnover last year was $6.7bn (€5.2bn).

Broker Investec said consolidation in the container shipping industry had been a long running theme and the P&O Nedlloyd-Maersk deal could make “perfect sense”.

Shares in P&O, whose stake in P&O Nedlloyd may be worth more than £300m (€439.4m) if sold, jumped 6% or 17p to 284p today.