DP World shelves subsidiary’s merger
DP World has announced that no further discussions are planned regarding a merger of its wholly owned subsidiary P&O Maritime Services with Mermaid Marine Australia.
The deal that was originally agreed in December will not proceed.
The merger would have seen the combined Mermaid Marine/P&O Maritime Services entity listed on the Australian Stock Exchange under the brand name P&O Marine, with more than 60% ownership residing with DP World.
According to Mermaid Marine, its financial performance had substantially exceeded expectations, and the company believed that the agreed merger ratio was no longer appropriate.
DP World, however, said the original deal was fair. The deal was agreed eight weeks ago after extensive negotiations and due diligence by both parties, and DP World has been given no information to justify any change to the terms.
DP World added that the proposed merger was a good fit for both companies, and would have allowed the two to explore new markets.
While continuing to believe in the strategic value of the merged entity, P&O Maritime Services is a strong business and DP World says it is equally comfortable supporting it to expand on its own.
The deal that was originally agreed in December will not proceed.
The merger would have seen the combined Mermaid Marine/P&O Maritime Services entity listed on the Australian Stock Exchange under the brand name P&O Marine, with more than 60% ownership residing with DP World.
According to Mermaid Marine, its financial performance had substantially exceeded expectations, and the company believed that the agreed merger ratio was no longer appropriate.
DP World, however, said the original deal was fair. The deal was agreed eight weeks ago after extensive negotiations and due diligence by both parties, and DP World has been given no information to justify any change to the terms.
DP World added that the proposed merger was a good fit for both companies, and would have allowed the two to explore new markets.
While continuing to believe in the strategic value of the merged entity, P&O Maritime Services is a strong business and DP World says it is equally comfortable supporting it to expand on its own.
