P&O sells cold logistics business
P&O today confirmed the sale of its cold logistics business for £183m (€268m) as it continued to weigh up a multi-billion pound takeover approach.
The ports and ferries operator – which received a bid approach at the weekend from a party thought to be Dubai Ports World (DPW) – struck the deal with Canada’s Versacold Holdings.
But a further break-up of P&O looked unlikely as reports today suggested that DPW would keep the ferries business if it was successful with a takeover bid.
P&O Cold Logistics is the third-largest cold storage and distribution operator in the world, with 3,000 employees in the United States, Australia, New Zealand and Argentina.
Chief executive Robert Woods said: “As P&O continues to focus on its fast-growing international ports business, it is time to look to another owner to take the cold logistics business to the next stage.
“Versacold is a well respected operator in the industry and we have every confidence that the business, its employees and customers will continue to thrive under its new ownership.”
P&O – The Peninsular and Oriental Steam Navigation Company – was founded in 1837 and is one of the most iconic names in British business. It is currently worth £3.13bn (€4.59bn).
The prospect of a bidding war for P&O sent its shares 30% higher on Monday to 400p as the UK company confirmed to the stock exchange that it had received a “very preliminary approach from a third party”.
It was thought to have come from Dubai’s state-owned ports firm DPW and was expected to draw out rival moves, possibly from Denmark’s AP Moeller-Maersk and Honk Kong’s Hutchison conglomerate.
The Middle Eastern firm was understood to have contacted banks about financing a bid for P&O, which owns 27 container terminals around the world including Southampton and Tilbury in the UK.
But speculation was rife that it planned to sell-off P&O Ferries, which has routes in the English Channel, Irish Sea and North Sea, if it took control of the company.
DPW, owned by the Dubai Ports, Customs and Free Zone Authority, is at present only a port operator and a takeover of P&O would be its first venture into ships.
According to the Financial Times, however, DPW would keep the ferries business after an acquisition.
