DP World calls off Australian merger
DP World has abandoned plans to merge its Australian subsidiary P& O Maritime Services with offshore oil services firm Mermaid Marine Australia. An agreement, which had been reached by both sides in December, would have involved a share swap, leaving DP World with a 60% stake in the joint company. The decision to call off the merger was taken by Mermaid Marine following better than expected financial results. However, public pronouncements by DP World suggest it would still be interested in renegotiating terms.
Reasons for the production shortage appear to include a huge increase in demand from China particularly and one of the main suppliers having recently experiencing a factory fire in Europe. The decision to call off the merger was taken by Mermaid Marine following better than expected financial results. However, public pronouncements by DP World suggest it would still be interested in renegotiating terms.