By Jacob Gronholt-Pedersen and Teis Jensen

COPENHAGEN, June 23 (Reuters) – Danish transport and oil group A. P. Moller-Maersk might cut up up into separate corporations, its chairman stated on Thursday after naming Soren Skou, the top of its container enterprise, as chief government.

Maersk shares rose greater than 10 p.c on the information with traders betting on a break-up and seeing the appointment as an indication of a extra profound restructuring.

“The question is whether we should be a large group, or whether we should be a number of independent companies,” Chairman Michael Pram Rasmussen instructed Danish on-line media Finans.

The board of administrators has instructed Skou to “investigate the strategic and structural options to further increase agility and synergies.” It plans to report on its progress by the tip of the third quarter of the yr.

Conglomerates like Maersk usually commerce at a reduction to corporations centered on one enterprise, whereas their advocates say a broad unfold of actions makes for much less unstable earnings.

But Maersk is now battling on two fronts, with container transport affected by historic low freight charges and the oil enterprise coping with round a 60 p.c fall in oil costs.

“It is reasonable to have different business areas within the company as long as you are able to deliver an attractive return,” Otto Friedrichsen, fairness strategist at Danish asset supervisor Formuepleje stated. “But the challenge is if a broad portfolio of business areas steals focus from the overall.”

Maersk Line is combating to stay the world’s main container transport provider as a wave of mergers and acquisitions, notably in Asia, creates new challengers attempting to seize a much bigger share of a depressed market.

Maersk income stood at $40 billion final yr. Its transport enterprise of greater than 600 container vessels is its largest.

The oil division, which produced 312,000 barrels per day of oil equal final yr, has additionally been hit by weak power markets..

The firm can also be energetic in oil drilling, operates terminals and has a fleet of tankers and different marine providers.

“The board wants a change of strategy for the group. There has probably been some disagreements about that, and I think that’s clear from the statement,” Michael Friis Jorgensen, analyst at Alm. Brand Bank in Copenhagen, stated.

Maersk veteran Skou, 51, will change Nils Smedegaard Andersen as group chief government. Andersen, who will depart the group, had been within the job since 2007.

Skou, who has been with A.P. Moller-Maersk for 33 years, will start in his new position on July 1, whereas remaining the top of Maersk Line, the corporate stated. He grew to become CEO of Maersk Line in 2012.

The administration change comes days after the grandson of Maersk Mc-Kinney Moller, who remodeled the transport firm into a world conglomerate, was appointed chief government of the holding firm behind the group.

Maersk, already a serious transport participant, started producing oil within the North Sea in 1972 after being awarded the only real concession to probe for oil and fuel in Danish waters.

The firm is the second largest company contributer to Danish authorities revenues after Novo Nordisk. In 2013, it paid 6.2 billion Danish crowns ($946 million) in Danish taxes, largely from North Sea oil manufacturing income, in accordance with its web site.

The group, managed by the Maersk household, was based in 1904 by A.P. Moller and was was a conglomerate working in 130 nations by his son, Maersk Mc-Kinney Moller, who had an energetic position within the firm till he died in 2012 aged 98.

The administration is anticipated to replace traders on its technique at a Capital Markets Day on September 22.

“It sounds to me like the company is about to reinvest in container shipping and go back to its core business,” Thijs Berkelder, analyst at ABN AMRO, stated.

($1 = 6.5559 Danish crowns) (Reporting by Jacob Gronholt-Pedersen & Teis Jensen, extra reporting by Nikolaj Skydsgaard; Editing by Keith Weir and Jane Merriman)

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