Audio By Carbonatix
The world’s largest container company will start looking for takeover targets outside the shipping industry as it tries to pre-empt a new competitive landscape in which customers are morphing into rivals.
Jakob Stausholm, A. P. Moller-Maersk A/S’s chief financial officer and head of transformation and strategy, says the company needs to expand its land-based activities to meet a growing need from clients.
“We’re currently very big in the ocean segment, and we’d rather grow in non-ocean, so it may be a good idea to look for M&A targets there,” Stausholm said in an interview Tuesday.
Buying land-based activities would mark a shift from the kind of consolidation Maersk and the industry have targeted in recent years.
The Danish company, which is in the middle of offloading its energy business and last year completed its acquisition of Hamburg Sud, now has 20 percent of the container shipping market.
Maersk says it wants to be part of further consolidation, but analysts warn it may face regulatory hurdles.
Now, Maersk is expanding its competitive universe to include different types of companies, including couriers like FedEx Corp. and UPS Inc., the CFO said.
“We’re not going to be direct competitors to FedEx and UPS, but we will see them as peers,” he said. “They are the global integrators in their industries and we want to become that in our industry.”
The CFO declined to identify what specific parts of the land-based logistics chain Maersk may target for takeovers.
He also said it may take some time before Maersk makes such acquisitions because the Copenhagen-based company is still focusing on getting its transport units to work more closely together.
Starting this year, Maersk will report revenue based on its ocean and non-ocean operations, with the latter including the logistic service activities and the port terminals. In 2017, non-ocean revenue made up about 28 percent of Maersk’s sales.
“It’s clear that we are very small in that area,” Stausholm said. “We’ll see that non-ocean will grow.”
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Latest Stories
-
They demolish buildings and tell us they’re building 24-hour markets – Paul Adom-Otchere
9 seconds -
NPP’s 2024 Bolgatanga Central Parliamentary Candidate elected Upper East Regional Chairman
12 minutes -
Incumbent Northern NPP Chair wins as new faces break through in party executive elections
16 minutes -
Former Health Minister Okoe Boye elected NPP Greater Accra Regional Chair
31 minutes -
Joseph Kobinah Esibu elected NPP Central Regional Chairman
41 minutes -
Fernandez booed by Chelsea fans as Alonso offers glimpse of blueprint
49 minutes -
PSG sign World Cup winner Torres from Barcelona
57 minutes -
Odeneho Kwaku Appiah beats former EPA boss Kokofu, to emerge NPP Ashanti chair
1 hour -
TDC defends statutory mandate, says its authority to develop Tema predates TMA
1 hour -
Ignatius Kwesi Afrifa elected NPP Western Regional Chairman
1 hour -
Galamsey will be a key issue for NPP’s 2028 campaign – Annoh-Dompreh
1 hour -
Makafui Woanyah retains NPP Volta Regional Chairmanship
1 hour -
Ghana Law Society announces maiden annual Bar conference for September 30
1 hour -
Abronye DC retains NPP Bono Regional chairmanship
2 hours -
NSMQ 2026: Check out the 147 schools battling in 49 preliminary contests
2 hours