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    Home > Finance > Denmark's Maersk to initiate $2 billion share buyback
    Finance

    Denmark's Maersk to initiate $2 billion share buyback

    Published by Global Banking & Finance Review®

    Posted on February 5, 2025

    2 min read

    Last updated: January 26, 2026

    This image features the Maersk logo alongside stock market graphics, highlighting the company's $2 billion share buyback program. It reflects Maersk's strategic response to market disruptions impacting the shipping industry.
    Maersk logo and stock market graphics illustrating $2 billion share buyback - Global Banking & Finance Review
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    Quick Summary

    Maersk initiates a $2 billion share buyback over 12 months, addressing disruptions in shipping routes caused by Red Sea conflicts.

    Maersk Begins $2 Billion Share Buyback Amid Shipping Challenges

    (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)

    Key Takeaways

    • •Maersk starts a $2 billion share buyback program.
    • •Buyback follows suspension due to Red Sea disruptions.
    • •Houthi attacks have affected shipping routes.
    • •First phase of buyback runs from Feb. 26 to Aug. 6.
    • •One-third of Maersk's container volume impacted.

    Frequently Asked Questions about Denmark's Maersk to initiate $2 billion share buyback

    1What is the main topic?

    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.

    2Why was the buyback program suspended?

    The buyback program was suspended due to market uncertainties from disruptions in the Red Sea caused by Houthi attacks.

    3How are shipping routes affected?

    Shipping routes are affected by re-routing due to Houthi attacks, causing higher freight rates and congestion in ports.

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