Maersk Makes Big Offer For P&O Nedlloyd

Danish container-shipping company A.P. Moeller-Maersk is buying its Dutch rival, P&O Nedlloyd for 2.3 billion euros ($3 billion) in cash to lock down its industry leadership. The combined company will employ about 70,000 people, and have 550 vessels. They plan to cut 1,500 jobs over the next three years but have not disclosed the amount of money that will be saved. P&O Nedlloyd's board is said to be supportive of Maersk's 57 euros per share offer. "They are buying to defend their position as the top market player," said Finn Bjarke Pedersen an analyst with Nordea Securities. "The price is high, but I'm sure that Maersk will make the investment profitable." Bloomberg News Murdok. Visit Murdok for the