Dubai Ports World (DPW) is now the third largest ports group in the world, after the protracted battle over the future of ports and ferries operator P&O was settled last week. Shareholders in the UK company voted in favour of DPW’s US$6.8 billion takeover bid, as Singapore-based operator PSA International finally admitted defeat and withdrew from the race.
The offer of US$9.04 a share was accepted by Peninsular and Oriental Steam Navigation Company shareholders at an extraordinary general meeting in London.
Shareholders voted 99.52% in favour of the DPW bid, according to P&O chairman John Walker. He rejected some shareholders’ complaints that the sale of the 165-year-old firm represented the forsaking of one of Britain’s most prestigious institutions.
“P&O, above all UK companies, should not be on the bandwagon of protectionism,” he said. “We are primarily a global trading company.”
The deal gives DPW the control of ports on six continents, broadening considerably the reach of a company that was previously ranked seventh in the world.DPW chairman Sultan Ahmed bin Sulayem expressed his delight that the offer — that needed the support of at least 75% of shareholders — was approved by such an overwhelming majority.
“It is a vote of confidence in our ability to manage the company,” he said. “We are delighted that stockholders have voted to support our acquisition of P&O, which brings to an end a period of uncertainty.”
“P&O is an excellent company with a great heritage and we welcome them warmly to the DP World family,” he added. “Together we are one of the world’s top three ports operators. There can be no doubt about the compelling strategic fit that the companies have together. This is very good news for our customers and our combined staff.”
He denied reports that the deal would mean the break up of P&O, including the sale of key assets.
Instead, he claimed the transaction would offer DPW an invaluable foothold in the ever-expanding Asian and Australian markets.
“It gives us an opportunity for growth, and it gives us an opportunity to get more customers in the Far East, because we can now also give them services in Europe,” he said. “We bought the company as a whole. The company is in good health and we are committed to the old business plan of P&O. From the start, DPW has clearly declared its support for all the restructuring plans carried out by P&O, and its commitment to retaining all of P&O’s assets.”
He also maintained that DPW had not paid over the odds for the maritime giant — but acknowledged that it was important to pay a high price in order to speed the transaction and head off a possible counter-bid from Singapore.
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