• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 8 mins WTI @ $75.75, headed for $64 - 67
  • 5 hours Uber IPO Proposals Value Company at $120 Billion
  • 3 hours The Dirt on Clean Electric Cars
  • 1 hour Trump vs. MbS
  • 11 hours Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 3 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 9 hours COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 11 hours EU to Splash Billions on Battery Factories
  • 12 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 5 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 47 mins Poland signs 20-year deal on U.S. LNG supplies
  • 16 mins Coal remains a major source of power in Europe.
  • 8 hours Nopec Sherman act legislation
Alt Text

Disappearance Of Saudi Journalist Could Rock Oil Markets

The disappearance of Saudi journalist…

Alt Text

OPEC Turns On The Taps To Counter Iranian Outages

OPEC reported a collapse in…

Alt Text

EIA Report Threatens Oil Price Rally

After a very bullish week…

Editorial Dept

Editorial Dept

More Info

Trending Discussions

Maersk-Linked Company Could Win Monopoly over Russian Container Shipping

Bottom Line: Denmark-based Maersk Group’s APM Terminals owns more than 25% of Global Ports Investments (GPI), with Russian partners, and GPI is hoping to acquire the National Container Company (NCC), giving the group control over the majority of Russian container shipping in the Black Sea, the Baltic Sea, the Gulf of Finland and the Arctic.

Analysis: The deal still has to br approved by competition authorities in Russia, Ukraine and Cyprus as well as by the Russian Control Commission. If it is approved, in all likelihood Maersk’s APM Terminals will emerge as majority shareholder because the Russian partners in this venture may not be able to come up with the capital. What Maersk’s APM will be gaining, quite simply, is near monopoly control over this container shipping market—even if the business is slowing and if the deal means taking on heavy debt. (GPI’s 2012 revenues were $501.8 million, but costs were up 24% at $343.2 million compared to the previous year, with operating profit down 30% to $157.3 million. Earnings gained 2% to $287.9 million, but after-tax profit took a 16% dive to $123.5 million.)

If the deal is approved, APM will have a 30.75% stake, after the NCC shareholders receive 18% in the deal. GPI’s three Russian partners (the company’s founders) will have 30.75% between then, and 20.5% will be spread among shareholders in London and Moscow.

Recommendation: We should know one way or the other within…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News