Global ports operator DP World has entered into an agreement to buy Maritime World LLC, the 100% owner of the Dubai Maritime City (DMC) maritime service facility for US$ 180 million. It is also acquiring complete ownership of Drydocks World, one of the region’s leading ship and rig repair and conversion businesses, through a capital injection of US$ 225 million.
DP World points out that DMC has a maritime focused commercial and industrial park, covering 2.3 million m2, and will provide DP World’s Economic Zones World FZE subsidiary with additional land as an alternative to Jebel Ali Free Zone where utilisation is now at a high level, and land is scarce. The group further believes that Drydocks World will integrate well with its P&O Maritime business.
Speaking about the Drydocks World acquisition, Sultan Ahmed Bin Sulayem, group Chairman and Chief Executive, DP World, said: “We are acquiring a market leader in the Middle East with the potential to deliver near term synergies and new revenue opportunities over the longer term, particularly in ship-repair and conversion, and in areas where P&O Maritime has expertise. We remain excited about the growth prospects of this business.”
The Drydocks World acquisition is subject to the successful completion of its debt restructuring process. However, both transactions are expected to be completed before the end of the first quarter of 2018.