DFDS Snaps Up Norfolkline

DFDS Snaps Up Norfolkline

AP Moller-Maersk is selling its European ro-pax ferry subsidiary Norfolkline to DFDS in a €347m ($496.3m) share and cash deal that sees Maersk take a 31% strategic stake in the Baltic and North Sea ferry operator. Talks between the two Copenhagen-based groups has been underway for more than six months, and the new venture will create a pro forma €1.5bn turnover ferry business stretching from Russia to Ireland, with 6,200 employees and a fleet of 73 vessels, half of which are owned.

DFDS chief executive Niels Smedegaard called the deal “a perfect match,” and said that management had already identified an initial DKr135m of savings to be achieved within two years. Mr Smedegaard said: “Norfolkline is a leading ferry and logistics company with a strong route network covering the North Sea, the Channel and the Irish Sea, combined with a considerable logistics operation. This means, that DFDS’ network is expanded to include two new markets, the Channel and the Irish Sea, we can combine our operations on the North Sea, and our ability to secure volumes for the network is greatly strengthened.” Is is not clear at this stage whether the Norfolkline brand will be retained and the scale of any job losses.