Ownership of P&O Ferries returns to DP World for $421mn
UK-based nautical transportation operator P&O Ferries was purchased this week by Emirati port operator DP World for a total consideration of US$421mn. The purchase sees P&O, which was previously purchased by DP World in 2006, but quickly sold off assets to its major shareholder, Dubai World, according to a Reuters report.
The transaction is expected to close in the first half of 2019, and DP World has announced its confidence that P&O Ferries is expected to be earnings accretive within the first year.
P&O operates a fleet of 21 vessels in the North Sea, Short Sea and Irish Sea, serving 11 ports. The company oversees the movement of over 2.5mn freight units annually. P&O Ferries operates more than 30,000 voyages a year in Europe. The ferries operate between Britain, France, Northern Ireland, the Republic of Ireland, the Netherlands, and Belgium.
In anticipation of Brexit, DP World announced it will be shifting the fleet’s registration arrangements to Cyprus in order to maintain favourable tax statuses and avoid regulatory entanglements, Reuters reports.
“We are pleased to announce the return of P&O Ferries back into the DP World family. P&O Ferries provides efficient European freight connectivity building on last year’s acquisition of Unifeeder,” said Sultan Ahmed Bin Sulayem, group chairman and CEO, DP World. “This transaction is in line with our strategy to grow in complementary sectors, strengthen our product offering and play a wider role in the global supply chain as a trade enabler.”
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