Dubai Ports World to acquire P&O

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P&O has agreed to a takeover bid from Dubai Ports World worth $5.7bn

Dubai Ports World (DPW) is to acquire UK ports and ferries company P&O in a takeover deal worth £3.3bn ($5.7bn). The company confirmed it has offered £4.43 ($7.64) per share in cash for the company.

DPW chairman sultan Ahmed Bin Sulayem commented: "DPW's acquisition of P&O will create a top three global ports operator with the scale and network to service an increasingly global and consolidated customer base. The unparalleled strategic fit of the companies' complementary global ports portfolio and the strong development pipeline, including the London Gateway, is particularly compelling. In addition DPW regards the management and employees of P&O as key to the ongoing success of the combined entity. It is our current intention to keep P&O's headquarters in London. We look forward to growing the combined businesses for the benefit of employees, customers and shareholders."

P&O chairman Sir John Parker commented: "DPW's offer recognises that P&O is a unique brand with an exceptional footprint of international port assets. P&O is one of the top four international port operators with 29 container terminals and operations in 18 countries across the globe, generating 80% of the group's total profits. P&O employees will also benefit. DPW has made it clear that it regards the management and employees as key to the ongoing success of the combined entity and that it recognises the importance of P&O ferries and properties divisions as well as ports. I am pleased to say that it is intended that P&O CEO Robert Woods will continue to head the P&O business."

P&O operates routes for freight and tourist passengers between the UK and France, Belgium, the Netherlands, Ireland and Spain. It operates a fleet of 26 ships.

DPW is one of the largest port operators in the world and was created in November 2005 by integrating Dubai Ports Authority and Dubai Ports International.