Eimskip merges with Faroe Ship

Eimskip merges with Faroe Ship    The boards of directors of Eimskipafelag Islands, of Iceland, and Faroe Ship, of the Faroe Islands, have approved a merger of the two shipping companies.
   Under the agreement, Faroe Ship shareholders will receive a payment of DKK100 million ($17 million) and a share of about 6 percent in Eimskip. Burdaras Ltd., the parent company of Eimskip, will own the remaining 94 percent of Eimskip.
   Eimskip said the merger will improve operations, efficiency and service to customers. Faroe Ship will take over the current operation of Eimskip in the Faroes. “Transportation systems in Iceland and the Faroes will be coordinated and their use and efficiency will be improved,” Eimskip said.
   Faroe Ship was established in 1919 and has more than 200 employees. The company operates three vessels between the Faroes, Scotland and Denmark. Its yearly revenue exceeds ISK3 billion ($43 million). The combined revenue of Faroe Ship and Eimskip in the Faroes after the merger is estimated at ISK4-5 billion ($57-70 million). Faroe Ship has four offices in Denmark and operates the forwarding company Spedition Atlantic, which is located in Denmark and specializes in land transport and the transportation of frozen and refrigerated seafood products Europe-wide.
   Eimskip has also recently announced layoffs and the transfer of employees at its offices in Reykjav'k, causing a reduction of 40 to 50 jobs. A new organizational structure will be introduced.