Singapore group drops out of P&O takeover race

The battle for control of ports group P&O looked to be over today after the Singapore-based company PSA declined to improve its offer.

The decision effectively handed victory to Dubai Ports World, which sparked the tussle in November when it tabled an approach worth £3.3bn (€4.8bn).

The Port of Singapore Authority – owned by Singapore’s state-run investment firm Temasek – briefly took pole position last month with an offer worth £3.5bn ( €5.1bn) before DP World returned with a knock-out bid of £3.9bn (€5.6bn).

DP World’s proposal will now go before P&O shareholders at a meeting at Wembley Conference Centre on Monday afternoon.

With DP World ports in locations including Abu Dhabi, Adelaide and Busan in Korea, the combined operation will have 51 terminals and a presence in 30 countries.

P&O’s operations and its historic brand will survive, with DP World expected to keep the London-based business separate and also maintain ownership of the ferries arm, even though it does not have any experience in this area.