Sale of Norfolk Line to DFDS approved

[Timber]

The following announcement has finally been made

Acquisition of Norfolkline approved and synergies increased

Release date: 17-06-2010 00:00:00


DFDS’ acquisition of Norfolkline approved by the European Commission
Expected annual cost synergies increased to DKK 180-220 million from previously DKK 135 million
New business structure with two market-oriented divisions
Since DFDS’ acquisition of Norfolkline was announced in December 2009 a detailed integration plan has been developed, including a new business structure for the combined company, and synergy estimates have been revised and increased. Following approval by the European Commission, the integration of DFDS and Norfolkline can begin once the planned share capital increase is carried out and the transaction thereby completed.

Approval by the European Commission
The European Commission has today approved DFDS’ acquisition of Norfolkline. The approval is contingent on replacement of the existing space charter agreement on the routes Esbjerg-Immingham/Harwich with Norfolkline by an agreement with an independent party. DFDS has therefore entered into a new space charter agreement with Stena Line pending approval by the European Commission. The European Commission has set minimum terms for the agreement concerning capacity and duration.

Expected annual cost synergies of around DKK 200 million
On the back of the detailed integration planning the estimate for annual cost synergies has been increased to an interval of DKK 180-220 million from previously DKK 135 million. It is primarily synergies concerning logistics, procurement and integration of group functions which have increased the synergies. The main synergies are shown in the table below.


DFDS and Norfolkline: Cost synergies

Activities Integration areas Expected annual cost synergies, DKK million
Shipping (routes North Sea) Tonnage optimization and integration of routes, port terminals, sales offices and functions. Optimization of sales and marketing

70-80
Logistics Optimization of haulage and trailer pools and integration of sales offices and functions

30-40
IT Integration of systems and organization

30-40
Procurement Optimization of procurement for onboard sales and technical procurement

35-40
Other functions General optimization of ship operations. Integration of finance, HR and other group functions

15-20
Total cost synergies 180-220


The implementation of the integration plan is expected to be completed by the end of 2012. The main part of the integration plan is, however, expected to be completed by the end of 2011 corresponding to around two-thirds of the expected annual synergies. Implementation costs and investments are expected to amount to DKK 175-200 million in the integration period to the end of 2012 with around two-thirds spent in the first 12 months of the period.

The potential from expected growth in revenues and earnings has still not been quantified.

New business structure for combined company
The business structure of the combined company is planned to comprise two marketoriented divisions, Shipping Division and Logistics Division.

The Shipping Division will comprise freight and passenger routes organised primarily in geographical units. Port terminals will be an integrated part of the Shipping Division.

The Logistics Division will comprise trailer and logistics activities and container and sideport activities. The trailer activities will be organised in geographical units.

The two market-oriented divisions will be supported by two resource units: People and Ships, with the purpose of ensuring efficient management of operational resources, and Finance. A main task for Finance will be managing and monitoring the implementation of the integration plan.

Management
The members of DFDS’ Executive Board will after completion of the transaction continue to be Niels Smedegaard, CEO, and Torben Carlsen, CFO. The members of the Executive Management will be announced shortly.

Next steps
Following the above mentioned approval of the transaction an Offering Circular is expected to be announced shortly for the previously announced share issues, respectively a rights issue of around DKK 550 million and a directed issue to A. P. Møller - Mærsk corresponding to an ownership share of 28.2%.

[Timber]

Ed Connell has posted this message on Dover Ferry Photos web site concerning the rebranding of the Dover Norfolk Line ships.

"Rebranding the three Maersk D's has commenced. There will be a unified brand for all the DFDS constituent parts, including Norfolkline. The shipping side will be known as DFDS Seaways and the trailer business will become DFDS Logistics. The ships will have a dark blue hull with DFDS Seaways emblazoned on the side, white superstructure, and a dark blue funnel with the DFDS white maltese cross in a circle.

Maersk Delft made a start on the saturday night layover in Dunkerque West. Scaffolding was erected around the funnel and the two Maersk stars removed. The funnel will be painted in DFDS colours whilst on service during the week. Maersk Dover, with a shorter layover, made a start by painting the lower part of the funnel in DFDS dark blue.

The ships will be renamed Dover Seaways, Delft Seaways and Dunkerque Seaways in due course."

Perhaps this is an indication of how things will soon change here at Harwich and Felixstowe.

[ryan123]

I found a pic on the net of Mearsk Delft



I found a pic on the net what is obviously fake (i think) but it shows what norfolkline's Lagan Viking would look like as dfds



QUESTION: on the side of this ship it says DFDS NORFOLK LINE will it say that on real ships

Ryan
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[alang]

In a press announcement of earlier today, DFDS have confirmed that the names of Norfolkline, Lys Line and DFDS Tor Line will all disappear and will be known as DFDS Seaways.

[Timber]

This is what was painted on the side of the Dana Anglia a few years ago!

[Timber]

It looks like the MAERSK FLANDERS will be renamed FLANDRIA SEAWAYS, so the re branding process will begin soon.
The new name takes on the theme of Tor line names ending in ***IA, eg TOR SUECIA etc, so it will be interesting to see if the Dover fleet end up with the same theme.

[alang]

The Dana Anglia (built 1978) which then became Duke Of Scandinavia, then Pont l'Abbe with Brittany Ferries, has now become Moby Corse operating on a Toulon to Bastia service in the Mediterranean.

[ryan123]

Tonigt when maersk Flandrs entered felixstowe i noticed that its funnel now has the dfds logo and coulers onit, Anyone got a picture?
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[Timber]

Here she is with her new funnel. This is the first time I have had the opportunity to see her, so I got both sides of the funnel to make sure they had done a proper job! I believe she will be renamed FLANDRIA SEAWAYS next weekend.

[Timber]

Now that the MAERSK FLANDERS has been renamed FLANDRIA SEAWAYS, it seems the TOR BRITANNIA will become the BRITANNIA SEAWAYS and the TOR SUECIA will be renamed SUECIA SEAWAYS.

[Timber]

Apparently, as part of their cost saving plans, DFDS have been looking at moving the Felixstowe fleet to Harwich. However, this would cause severe congestion on the berths and HIP would need to create new lorry parks ashore to cope with the hugely increased numbers of units using the port, so no decision has been reached.

[ryan123]

today i was looking along the Hayshem - Dublin route looking for "Maersk Importer's" new name and I found she had been renamed Hibernia Seaways and is already in full DFDS coulers


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