Battle for Mersey Docks ports firm hots up in UK

The battle for control of the UK’s second-biggest ports firm intensified today after Peel Holdings spent £103.8m (€149.4m) for a higher stake.

Peel – the owner of the Manchester Ship Canal and Liverpool John Lennon Airport – confirmed that it had more than doubled its interest in Mersey Docks & Harbour Company to 25.66%.

The deal means it is now strong enough to block an attempt by private equity firm CVC to gain control of Mersey Docks.

CVC is understood to be willing to pay £722m (€1bn) to land the company – a price that the Mersey Docks board believes is “fair value” in the absence of a higher offer.

But stakebuilding by Peel, which also owns the Trafford Centre in Manchester, has sparked fresh speculation that it is ready to launch its own counter-bid.

Shares in Mersey Docks, which operates ports at Liverpool, Heysham and the Medway towns of Sheerness and Chatham, have surged more than 17% since November when news of the bid interest first broke.

Analysts have talked up the quality of its ports business, the potential to redevelop surplus land and an ongoing programme to buy back its own stock.

In addition to its four ports, Mersey has a shipping division trading as BG Freight Line as well as the Roadferry logistics and transport business.