Dubai Ports World from the United Arab Emirates (UAE) buys P&O, the British ports and ferry group, for 3.3 billion pounds ($5.7 billion) in a deal that will create the world's third largest container terminal operator.

Sultan Ahmed Bin Sulayem, the Executive Chairman of DP World - Ports, Customs & Free Zone Corporation - the global ports business of the Offeror Group said:

"DP World's acquisition of P&O will create a top three global ports operator with the scale and network to service an increasingly global and consolidating customer base. The unparalleled strategic fit of the two companies' complementary global ports portfolios and the strong development pipeline, including London Gateway, is particularly compelling. In addition, DP World regards the management and employees of P&O as key to the ongoing success of the combined entity. It is our current intention to keep P&O's headquarters in London. DP World looks forward to growing the combined businesses for the benefit of employees, customers, and its shareholder."

Sir John Parker, the Chairman of P&O, said:

"We have today announced that the Board of P&O is recommending DP World's all cash offer of 443 pence per share, which values the existing issued deferred stock of P&O at £3.3 billion. DP World's offer recognises that P&O is a unique brand with an exceptional footprint of international port assets. P&O is one of the top four international port operators with 29 container terminals and operations in 18 countries across the globe, generating 80 per cent. of the Group's total profits."

"P&O employees will also benefit. DP World have made clear they regard the management and employees as key to the ongoing success of the combined entity and that they recognise the importance of P&O's ferries and properties divisions, as well as ports. I am pleased to say that it is intended that Robert Woods, Chief Executive of P&O, continues to head up the P&O business and for P&O to remain headquartered in London. Putting P&O and DP World together will create one of the top three leading ports groups in the world."