Following the integration of DAMCO and Safmarine brands, A.P. Møller - Maersk has finalised the acquisition of KGH Customs Services, a pan-European customs services provider, further strengthening its capabilities as an integrated container logistics company, offering end-to-end supply chain solutions.
The Danish company completed the acquisition of the European customs services specialist on 2 September, following the initial announcement in July and after receiving the required competition approvals.
"We can now officially welcome KGH into the Maersk family," commented Karsten Kildahl, regional managing director of Maersk in Europe, adding that "The integration process now begins."
A Maersk representative, asked by Container News, said that the integration of DAMCO and Safmarine will impact up to 27.000 jobs, and that relates to people moving regions.
The shipping company would not confirm reports that there will be 3,400 redundancies as a consequence of the integration. "We have now communicated the change yesterday to our colleagues and now the dialogue with work councils across the affected regions begins," said the spokeswoman.
During the remainder of 2020, Maersk and KGH teams will work together on establishing a joint operating model and optimal structure to serve their customer base going forward. Customers will meanwhile continue to interact with their current contacts in both organisations, according to a statement.
Lars Borjesson, CEO of KGH, will take over the lead of the combined customs related activities of both KGH and Maersk in Europe.
Maersk is focusing completely on the reorganisation just announced which will be executed on in the months to come, according to the company's spokeswoman.