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Merger plan puts 1,500 jobs at risk
Page 6
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The merger of two logistics giants could cost a lot of UK jobs. Guy Sheppard and Chris Tindall report.
ABOUT 1,500 jobs are at risk if a proposed merger between shipping and logistic giants AP MoellerMaersk and Royal P&O Nedlloyd (RPONL) goes ahead.
Danish-based Maersk is offering to pay £1.6bn for the Anglo-Dutch RPONL. Both groups have extensive road transport operations in the UK and on the Continent.
RPONL owns Barking-based Roadways Container Logistics which employs more than 600 people and operates 280 trucks. Roadways' strategic planning manager Bob Ingram confirms he is aware of the deal, but says he is unable to comment further. However, he refutes the job loss figure, adding: "Nobody has any idea at this stage, am sure. It's far too early for anyone to make a call."
Macrsk owns the Dutch-based North Sea trailer specialist Norfolk Line which employs 1,400 people and has a fleet of 70 trucks.
Although the job losses equate to 5% of the combined workforce of the two groups, many are expected to go through natural wastage; losses are likely be concentrated among head office staff. RPONL says merging with Maersk will bring two highly complementary businesses together. "Their combined scale and knowhow will create the world's leading container shipping line and logistics provider," according to chairman Andrew Land.
Full agreement on the offer is expected shortly.
P&O, which has a 25% stake in RPONL, intends to accept the offer, saying the sale will be another key step in focusing on its core international ports business. christopher.iindallerbi.co.uk