P&O poised for Arab takeover
Ports and ferries business P&O agreed to end 168 years of independence today by backing a £3.3bn (€4.8bn) takeover by Dubai’s DP World.
The owner of the iconic shipping brand, which has been in the bid spotlight since receiving an approach in October, has given its support to a proposed deal that will create one of the world’s top three port operators.
DP World, which is owned by the government of the United Arab Emirates, said it intended to keep P&O’s headquarters in London and described the strategic fit between the two companies as “particularly compelling”.
The price offered by DP World is higher than many analysts had been expecting and comes amid reports that a bidding war may break out for P&O.
Temasek, which already owns the world’s second biggest ports group, the Port of Singapore Authority, as well as Hutchison Ports – the world’s largest operator – and Denmark’s AP Moller-Maersk could make rival approaches.
P&O operates 29 terminal container terminals and logistics operations in more than 100 ports, while it also runs ferries between the UK and France, Belgium, the Netherlands, Ireland and Spain.
The ferries arm has struggled in recent years but DP World, which does not have any operations in this area, said it wanted to restore the business to “strong profitability” in 2006.
