Singapore's PSA gives up on P&O

PSA International, the world's second-biggest container port operator, has pulled out of a bidding war to acquire British shipping giant P&O.

    P&O's 29 ports would have been an asset to PSA

    The Singapore company announced on Friday that it would no longer bid after rival Dubai Ports World made a higher offer.

    Dubai Ports World last month raised its offer to $6.9 billion for the company, trumping a $6.3 billion offer from PSA, a unit of Singapore's government-owned investment company, Temasek Holdings.

    A company statement said: "PSA has decided not to increase its offer and will therefore no longer pursue the acquisition of P&O. For PSA, to pay more than this price would not be compatible with commercial business sense and PSA's future success."

    Imperial legacy

    Founded in 1837, P&O carried cargo throughout the British empire in its heyday to Sydney, Calcutta, Singapore, Hong Kong and other colonies.

    The addition of P&O's 29 ports around the world would have helped PSA gain ground on the world's biggest operator, Hutchison Whampoa of Hong Kong.

    In a statement, P&O Chairman Sir John Parker thanked PSA's leadership "for their professionalism and courtesy throughout this process."

    "The P&O Directors recommend unanimously the DP World revised offer and look forward to putting it to Stockholders," the statement said. "The combination of P&O and DP World has compelling strategic logic and will create significant opportunities for both businesses and their employees."

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Survivor stories from Super Typhoon Haiyan

    Survivor stories from Super Typhoon Haiyan

    The Philippines’ Typhoon Haiyan was the strongest storm ever to make landfall. Five years on, we revisit this story.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    Thou Shalt Not Kill: Israel's Hilltop Youth

    Thou Shalt Not Kill: Israel's Hilltop Youth

    Meet the hardline group willing to do anything, including going against their government, to claim land for Israel.