DFDS acquisition of Norfolkline approved
SHIPPING: The European Commission has approved DFDS acquisition of Norfolkline from A. P. Moller - Maersk. DFDS expects annual cost synergies effects of 180-220m Danish kroner, increased from previously estimates of 135m Danish kroner.
The implementation of the integration plan is expected to be completed by the end of 2012. The main part of the integration plan is, however, expected to be completed by the end of 2011 corresponding to around two-thirds of the expected annual synergies.
The costs and investments in the integration period are expected to amount to 175-200m Danish kroner to the end of 2012 with around two-thirds spent in the first 12 months of the period. The potential from expected growth in revenues and earnings has still not been quantified.
The business structure of the combined company is planned to comprise two marketoriented divisions, Shipping Division and Logistics Division.
The Shipping Division will comprise freight and passenger routes organised primarily in geographical units. Port terminals will be an integrated part of the Shipping Division.
The Logistics Division will comprise trailer and logistics activities and container and sideport activities. The trailer activities will be organised in geographical units.
The two market-oriented divisions will be supported by two resource units: People and Ships, with the purpose of ensuring efficient management of operational resources, and Finance. A main task for Finance will be managing and monitoring the implementation of the integration plan.
Source: DFDS / maritimedanmark.dk
