Finance
Denmark's Maersk to initiate $2 billion share buyback
Published by Global Banking and Finance Review
Posted on February 5, 2025
2 min readLast updated: January 26, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on February 5, 2025
2 min readLast updated: January 26, 2026
Maersk initiates a $2 billion share buyback over 12 months, addressing disruptions in shipping routes caused by Red Sea conflicts.
(Reuters) -Maersk said on Wednesday it has initiated a share buyback program of up to 14.4 billion Danish crowns ($2.01 billion), which will be executed over a period of 12 months.
The Danish shipping company had suspended its buyback program in February last year due to market uncertainties caused by disruptions in the Red Sea.
Attacks on vessels in the Red Sea by Iran-aligned Houthi militants have disrupted a shipping route vital to east-west trade, with prolonged re-routing of shipments pushing freight rates higher and causing congestion in Asian and European ports.
Maersk continues to divert vessels away from the Gulf of Aden and Red Sea and toward the southern tip of Africa despite Yemen's Houthis announcing they will curb their attacks on ships.
The shipping company had said one-third of its container volume was impacted by Red Sea disruptions.
The first phase of the buyback program will run from Feb. 26 up to Aug. 6 and the shares to be acquired will be limited to a total market value of 7.2 billion Danish crowns, the company said.
($1 = 7.1577 Danish crowns)
(Reporting by Rishabh Jaiswal; Editing by Shailesh Kuber in Bengaluru and Krishna Chandra Eluri)
The main topic is Maersk's initiation of a $2 billion share buyback program due to disruptions in shipping routes caused by Red Sea conflicts.
The buyback program was suspended due to market uncertainties from disruptions in the Red Sea caused by Houthi attacks.
Shipping routes are affected by re-routing due to Houthi attacks, causing higher freight rates and congestion in ports.
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