Ports group stays on course for takeover

The UK’s second biggest port operator said today it remained on track for a £780m (€1.1bn) takeover by the owner of Liverpool’s John Lennon Airport.

Mersey Docks & Harbour said talks with Peel Ports – a division of Manchester-based property and transport group Peel Holdings – were continuing with the two parties close to agreeing a structure for both boards to consider.

Peel, which also owns the Manchester Ship Canal, secured the talks after trumping a private equity firm with an offer worth £10 a share.

It will acquire ports at Liverpool, Heysham and the Medway towns of Sheerness and Chatham, if the discussions are successful and the proposal overcomes a regulatory investigation.

Updating shareholders, Mersey said Peel was also finalising financing and seeking a resolution to the deficits in Mersey’s pension funds.

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.

In March, Mersey announced underlying pre-tax profits rose to £55.6m (€82.3m) in 2004, from £54.2m (€80.2m) last time, which it said provided a solid base for progress in 2005.

Peel also runs Scotland’s Clydeport, which covers a 450 square mile area on the River Clyde, its estuary and lochs, and owns the Trafford Centre in Manchester. Other assets include the Glasgow Harbour development.