Dubai-based port operator DP World pays £322m for P&O Ferries

Emirati port operator DP World has bought back P&O Ferries for £322m 13 years after selling it.

DP World acquired P&O, the British freight firm, in 2006 but sold off some assets, including P&O Ferries, to major shareholder Dubai World within the same year.

Now it has paid to get the company back, along with logistics arm P&O Ferrymasters, which provides supply chain services to 19 European locations and handles over 2.5m freight units, accounting for 75 per cent of P&O revenue.

DP World’s chief executive, Sultan Ahmed Bin Sulayem, said: “P&O Ferries is a strong, recognisable brand and adds a best-in-class integrated logistics provider into our global portfolio.

“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.”

Dubai-based DP World is one of the world’s largest port operators, including ports in London and Southampton, and employs 45,000 people worldwide.

The transaction is expected to take place in first half of 2019 and is expected to increase the value of DP World’s shares from its first full year of consolidation and meet its return targets.

Dubai World was at the centre of the emirate's financial crisis over a decade ago and was forced to restructure £19bn of debt in 2011.

P&O Ferries booked sales of £1.1bn in 2017 and earnings of £100m.