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 has started a $2 billion share buyback program over 12 months, addressing disruptions in the Red Sea affecting shipping routes.
(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)
Maersk has initiated a share buyback program worth up to 14.4 billion Danish crowns, which is approximately $2.01 billion.
The company suspended its buyback program in February last year due to market uncertainties stemming from disruptions in the Red Sea.
Maersk reported that one-third of its container volume was affected by the disruptions in the Red Sea, leading to significant operational challenges.
The first phase of the buyback program will run from February 26 to August 6, with a total market value of 7.2 billion Danish crowns.
Maersk continues to divert vessels away from the Gulf of Aden and Red Sea towards the southern tip of Africa, despite announcements from Yemen's Houthis to reduce attacks.
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