Dubai Ports World will take over a British ports and ferries operator in a takeover deal worth $5.69 billion.
Last month, Peninsular & Oriental Steam Navigation, also known as P&O, confirmed it had been in contact with a potential bidder.
Vice-chairman of the board of DP World Jamal Majid Bin Thaniyah said the announcement of DP World’s offer had been made at the London Stock Exchange (LSE) on Tuesday, Gulf News reported, and hours later the bid was approved.
P&O began in 1840 and is the fourth largest ports operator in the world.
The company has been reducing its ferries and properties as well as cutting back on jobs because of slow economic conditions in some of its areas of operation.
Dubai Ports World is owned by the Dubai government and manages ports in Asia, Europe, Australia and South America.
Sources close to the deal told Gulf News that the acquisition has attracted a flood of interest from international financial institutions and banks who wish to participate in the debt financing.
Bin Thaniyah said P&O’s management, staff and UK-France ferries business would be retained.