CP Ships Limited has reached agreement with d'Amico Società di Navigazione S.p.A. to acquire all issued and outstanding shares of Italian container shipping company Italia di Navigazione for US$ 40 million in cash.

The transaction, which is subject to regulatory approval and certain other closing conditions, is expected to close in the third quarter. Italia operates its principal container services between the Mediterranean, West Coast North America and Central and South America. It carried about 180,000 teus in 2001.

Formerly owned by the Italian government, Italia was privatized when acquired by d'Amico in 1998. Italia will remain headquartered in Genoa, Italy, where CP Ships already has a substantial presence.

"The purchase of Italia is the continuation of a key element of CP Ships' overall strategy of making acquisitions to strengthen our regional position, create new opportunities for growth and build trade lane economies of scale, " said CP Ships' CEO Ray Miles.

"It has been a decision that we have made to guarantee the future of the company," said Cesare d'Amico. "Italia has been strengthened and is now ready for the consolidation process in the container trades. It will become part of a group well established in the American market and will be able to achieve greater economies of scale. The brand will be maintained, as well as the obligations towards the personnel." He added "d'Amico can now concentrate on its growing bulk and product carrier shipping activities in which it is investing heavily.

It will also focus on expanding its Intra-Mediterranean feeder services and on entry into the short-sea trades."

The acquisition includes:

· Italia brand and logo

· Services in four container shipping trade lanes:

- Mediterranean-West Coast North America

- Mediterranean-Central and South America

- West Coast North America-West Coast Central and South America

- Intra-Central and South America

Including the former d'Amico container services already merged with Italia

· Charter of 11 containerships with capacity between 1000 and 2500 teu

· Mainly leased container fleet of about 40,000 teu

· Genoa headquarters and staff, including employment guarantees given by d'Amico to the Italian government

· Owned agency operations in Italy, Spain, Canada and Venezuela