DP World mulls P&O takeover

22 November 2005
DP World, which was created in September by the merger of Dubai Ports Authority and Dubai Ports International, has declined to comment on reports that it has tabled a bid of in excess of $5,000 million to acquire the UK's P&O. The UK firm has confirmed initial contact from a potential Gulf buyer without providing further details.

According to reports in the UK press, Deutsche Bank, is advising DP World on the bid. A number of other international operators are expected to submit bids for P&O, which reported a sharp downturn in first-half earning and has been undergoing a shake-up of its business recently.

DP World is expanding aggressively abroad and in early November announced the acquisition of a coastal site at Yarimca in Turkey where it will develop and operate a greenfield container terminal. Investment of some $170 million is planned in terminal infrastructure and construction will begin in 2006 with completion due in 2008. The port will have capacity of more than 1 million 20-foot equivalent units (TEUs).

DP World is the world's sixth largest port operator. It runs 18 ports and handles about 12.5 million TEUs a year (MEED 7:10:05).


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