AP Moeller-Maersk A/S, the world's biggest container shipper, has agreed to buy Brostroem AB for 3.62 billion Swedish kronor (US$568 million), creating the largest operator of gasoline, jet fuel and diesel tankers.
Maersk offered 57 kronor in cash for each Brostroem share, or 10 percent more than the closing price on Tuesday, the Copenhagen-based company said yesterday. The board of Gothenburg, Sweden-based Brostroem has unanimously recommended accepting the offer.
The purchase may help Maersk tap demand for longer-distance deliveries of oil products as most new refinery capacity is being built in Asia and the Middle East, away from the United States and Europe where the bulk of the fuel is consumed.
The business will contend with increased competition for cargoes because the number of vessels under construction equals 61 percent of the current fleet, reported Bloomberg News.
"It makes sense from a strategic point of view," said Peter Rothausen, an analyst at Kaupthing Bank A/S. "They are paying a high price, which means they must get some good synergies." The Copenhagen-based analyst recommends selling Maersk shares.
Shares rise
Maersk rose 0.8 percent to 53,300 kroner at yesterday in the Danish capital. The company was due to report first-half earnings later yesterday. Brostroem shares advanced as much as 9.7 percent and were up 7.7 percent at 55.75 kroner.
"The scale of the combined operation will enable us to offer a superior worldwide service through a large, modern and homogeneous fleet," Soren Skou, chief executive officer of Maersk Tankers, said. "We need scale to ensure our organization is cost-effective and for customers to have easy access to chartering offices globally."
Brostroem reported sales of 3.5 billion kronor last year and net income of 427 million kronor, according to Maersk. The Swedish company's A-class shareholders, controlling 29.3 percent of the stock and 55.9 percent of votes, have accepted the offer, Maersk said.
The combined fleet will have 301 chemical and refined oil tankers, including 60 that are under construction. That will take the new company past Danish rival Torm.
