The UK’s second biggest port operator (Port of Liverpool) has agreed a eur771m takeover by the owner of the Manchester Ship Canal. Mersey Docks & Harbour Company said the takeover by Peel Ports was an “attractive outcome” for shareholders. Peel, which also runs Clydeport, Scotland, will acquire ports at Liverpool; Heysham, Lancs; and the Medway towns of Sheerness and Chatham. The tie-up, which still requires the backing of Mersey shareholders, is expected to be completed in late July.

The Mersey Docks and Harbour Company, which owns and operates the Port of Liverpool, has invested more than ?100 million over the past five years, including eur25 million on expanding and upgrading the Seaforth Container Terminal. Other companies have made their own seven-figure investments to secure even greater prominence in the markets they serve. Cargo passing through the Port of Liverpool is at an all-time high. More than 32 million tonnes of trade crossed the quays in 2004 and with millions of pounds being spent on providing new facilities and enhanced services, the prospect is for further growth.

The ports operator, which already owns 25% of Mersey, had been in talks about a deal since February after trumping a private equity firm with an offer now known to be eur10 a share when including an 18p dividend payment.

The combination of Mersey with Peel’s existing port operations offers exciting future opportunities for both groups. In March, Mersey unveiled underlying profits of ?55.6m in 2004, up from ?54.2m last time, and which it said provided a solid base for progress. In addition to its four ports, Mersey has a shipping division trading as BG Freight Line as well as the Roadferry logistics and transport business.

[color=#ffffff]Mersey Docks & Harbour Company

Port of Liverpool UK [/color]

Peel first approached Mersey in January with its bid proposal. Both companies have major property interests, with Peel owning assets including the Glasgow Harbour development, one of the largest in the UK. The operational and investment property interests of Mersey Docks & Harbour Company include 800 hectares of dockland at Liverpool and 354 hectares at the Medway ports.

The enlarged ports group will have a total turnover in excess of ?400m and more than 2,100 employees. As part of Wednesday’s deal, Peel has agreed to invest ?18.7m into the Mersey pension schemes to eliminate deficits in four main pension plans. Peel Ports is a division of Peel Holdings, which has interests including Trafford Park in Greater Manchester and Liverpool’s John Lennon Airport. The offer needs to be approved by 75% of Mersey’s non-Peel shareholders and gain formal clearance from the Office of Fair Trading.

Source: BBC News

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