Executives from the two Chinese giants are reported to have been tasked with combining the companies, with some suggesting it will adopt a structure akin to Singaporean wealth fund Temasek.
Nils Andersen, chief executive of Maersk Line parent AP Moller-Maersk, was pressed on what the combination may mean for the world’s largest containership owner in an interview with Bloomberg television.
“They will maximum be the third largest carrier if they combine,” Andersen said. “Generally our attitude is we like some combinations to happen. Some consolidation in this market would be good."
He added: “The rates we are working with now, if you count the slightly higher oil price, are actually on the same level as they were back in 2009 when we lost $900m.
“This year we made in Maersk Line $1.1bn in essentially the same competitive situation.
“So I think it has become a much, much stronger company and we feel whatever happens on combinations and strengthening of individual competitors, we will be able to run a very, very solid business here for the years to come.”
Maersk Line yesterday posted a much stronger than anticipated second quarter result with an adjusted gain of $1.099bn for the quarter, ahead of the $797m consensus.
Maersk also launched a share buyback programme worth $1bn.
“We are investing quite heavily in the business, but we have got a very strong balance sheet and we think with the present share price it’s not a bad idea to buy back stock,” Andersen said.
“I think it’s good for the shareholders to see that we want to keep a good, strong balance sheet but we don’t want it to be over-strong.”
