Nedlloyd makes its move on P&O
Feb 3, 2004
In a move not unexpected in shipping circles, Royal Nedlloyd yesterday announced it was buying out the 50 % share held in P&O Nedlloyd by its partner P&O (Pacific & Orient Steam Navigation) in a transaction costing an estimated 485 million euros.
The announcement ends speculation that a merger involving another shipping container line was likely.
In terms of the agreement P&O will receive 215m euros and a 25 % stake in the new company named Royal P&O Nedlloyd NV (wasn’t PONL long enough?) with its head office based in Rotterdam. P&O Nedlloyd is expected to continue trading under its own name for the present.
It is expected that P&O will now concentrate on its port operations business P&O Ports, which in 2003 handled more than 11 million TEUs at its operations worldwide. P&O Ports has a sizeable investment and future ambitions in South African port activities