MÆRSK Mc-KINNEY MØLLER (2)

I was wrong about what would happen to A.P.Møller-Mærsk, Denmark's largest company, after the old man died earlier this year. I thought that there would be a gradual concentration on Mærsk Line, the world's number one in container shipping, and the ports and terminal division that services it; and a gradual reduction in the other activities in the conglomerate, perhaps culminating in a spin-off or two. Instead, the new plan, announced this week, emphasises the oil and gas division, and downgrades the importance of shipping, which is deemed to be too volatile.

That strikes me as misguided. Mærsk, although a big company, is still a minnow in the energy business, where size really does matter. On the other hand, being the number one in the world is an enviable position, particularly in an industry which is ripe for further consolidation. If "stick to the knitting" is a sensible way to run a business, then Mærsk's knitting is shipping.

There has however been one undeniably positive development arising from the new strategy. Historically, the company has been renowned for its secrecy. Yet oil and gas requires oodles of capital, which Mærsk has to get from the markets; and if the markets are going to provide it, then they need to know what is going on. Yesterday, Mærsk held its first ever open day for financial analysts. The reaction was mixed, but it was at least a start.

Walter Blotscher