The two groups broke their silence on Tuesday, confirming the two businesses were in possible merger talks, after European media speculation forced the two groups to make a public statement.

Møller-Mærsk followed on Wednesday by announcing it had reached agreement with Royal P&O Nedlloyd for a conditional EUR2.3 billion offer for all the outstanding shares in the Amsterdam–listed Nedlloyd. Møller-Mærsk has set a minimum 70% acceptance figure.

“The intended offer will be EUR 57 per share after payment of dividend of EUR 1 per share to the shareholders of Royal P&O Nedlloyd NV on 13 May 2005,” said a Møller-Mærsk statement.

“The price of EUR 57 per share corresponds to a purchase price for the entire share capital of approx. EUR 2.3 billion. The board of directors of Royal P&O Nedlloyd NV recommends the intended offer.

“Taking over the shares in Royal P&O Nedlloyd NV will create a unique opportunity for further development of the global container business of the two companies to the benefit of customers, employees as well as shareholders.

The A.P. Møller-Mærsk fleet comprises more than 250 vessels with a total deadweight of about 12,000,000 tons and includes container vessels, tankers, car carriers, supply ships, special vessels and drilling rigs.

P&O Nedlloyd operates a fleet of 156 vessels with a standing capacity of 428,000 teu. In 2004, P&O Nedlloyd's turnover was US$ 6.7 billion.