P&O takeover puts Dubai into the big league

DP World is taking another quantum leap forward in the global ports industry by acquiring P&O for US $5.7 billion, creating one of the biggest port groups in the world.

  • E-Mail
By  Robeel Haq Published  December 1, 2005

P&O takeover puts Dubai into the big league|~|p&o2.jpg|~||~|DP World is taking another quantum leap forward in the global ports industry by acquiring P&O for US $5.7 billion, creating one of the biggest port groups in the world. During its peak, P&O ruled the waves, gaining iconic status around the world. Now, however, the nearly 170-year-old company is ready to embark on its new journey to Dubai. If the process sails smoothly, the acquisition should be completed during the first quarter of 2006. A rival bidder, of course, may still enter the scene. Although this may seem unlikely at this stage, counter bids are generally conducted in a secretive nature, and the other leading port operators are certainly rich enough, so dismissing the possibility outright would seem foolish. However, DP World seems confident about the deal. This is hardly surprising, considering the company recently completed another major acquisition, when it successful purchased the US group CSX Corporation for US $1.15 billion. DP World's strategy for growth is certainly ambitious. It is already the seventh biggest player in the global market and the acquisition of P&O means it climbs further up the league table, into third position, running an impressive 51 terminals in 30 countries around the world, with a combined capacity of 50 million TEUs. Sultan Ahmed Bin Sulayem, DP World's chairman, has likened the company's growth to Dubai's hugely successful airline, Emirates, which has quickly developed from a small regional player into a heavyweight global carrier. This seems a rational comparison and showcases the global impact of developments taking placing across the Middle East's transport sector, something the region can boast about with pride.||**||

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code