P&O shareholders back takeover

Shareholders of P&O today overwhelmingly backed the group’s takeover by Dubai Ports World, creating the world’s third largest ports group.

Chairman Sir John Parker said at an extraordinary general meeting that 99.5% of people had backed the £3.9bn (€5.7bn) proposal.

DP World won the battle for control of the group on Friday when its Singapore-based rival PSA declined to improve its offer for P&O.

The takeover battle for the group was sparked in November when DP World tabled a £3.3bn (€4.8bn) bid for the ports group.

The final 520p a share offered by DP World, which is owned by the government of the United Arab Emirates, was much higher than many analysts had expected.

The takeover will become effective from March 2 following a High Court hearing on February 27 to sanction the scheme. A P&O spokeswoman said shareholders should get their money on March 16.

The move creates a ‘Big Four’ of global port operators, with the combination of seventh-largest DP World and fourth-placed P&O taking the new group to third place in the rankings, behind Hong-Kong based Hutchison and Denmark’s APM, with PSA coming in fourth.

But the move ends 169 years of UK ownership for P&O, although its operations and historic brand are expected to survive, as DP World is 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.

Founded in 1837, P&O carried cargo throughout the empire to Sydney, Calcutta, Singapore, Hong Kong and other colonies in its heyday.

It currently has three divisions – ferries, ports and cold logistics – but has dabbled in a number of sectors outside shipping in its history, including housebuilding with Bovis Homes and ownership of the Earls Court exhibition centre.

Now P&O operates 29 terminal container terminals and logistics operations in more than 100 ports, while it also runs ferries between the UK and France, Belgium, the Netherlands, Ireland and Spain. The combined operation will have 51 terminals and a presence in 30 countries.

Shares in P&O closed unchanged at 516.75p today.