Danish conglomerate A.P. Moller-Maersk A/S said today that it will split into two divisions by the end of the year, with the parent retaining control of the transportation and logistics operations and its energy business being separated into its own unit.
The move had been widely telegraphed after Maersk's board in June directed its management to explore options that would generate growth for the corporation, which has been buffeted by sluggish global shipping demand, vessel overcapacity, and persistently low oil prices.
The parent's focus will be on its transport and logistics operations. Maersk's liner business is the world's biggest by vessel capacity, and transports the equivalent of 15 percent of global gross domestic product. The unit consists of the liner business, terminal operator APM Terminals Management BV, and logistics company Damco International BV. Soren Skou, the parent's CEO, will also become the unit's CEO while retaining his current position.
The CEO of APM Terminals, Kin Fejfer, will leave the company on Dec. 1.
The parent said the liner business will focus on growth, in part through acquisitions.