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Drydocks sold as DP doubles up in Dubai

Repair and construction shipyard goes to ports player, which also takes Dubai Maritime City in double purchase

Drydocks World in the United Arab Emirates is being bought by compatriot DP World in a cash deal set to close by the end of this year.

It makes a double purchase for DP, which has also agreed to take Dubai Maritime City, with the combined value of the two deals $405 million.

DP is injecting $225 million in fresh capital into Drydocks World, a rig and ship player not far from the emirate city of Dubai, which has also worked on several modules for large offshore field developments.

The other transaction is seeing DP pay $180 million for Maritime World, the 100% owner of Dubai Maritime City (DMC), adjacent to DP's Port Rashid.

DP said both deals are set to close before the year end and are expected to be earnings accretive for the first full year of consolidation.

DP World chief executive Sultan Ahmed Bin Sulayem said: "Drydocks World bolsters our investment in the maritime sector through our subsidiary P&O Maritime.

"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 conversion and in areas where (P&O) has existing expertise."

The DP boss continued: "Dubai Maritime City provides us with stable leasing income from DMC’s existing industrial zone and spare capacity to develop industrial and commercial activities for the maritime sector in a prime location of Dubai.

"We aim to develop the best-in class Maritime City serving the needs of the maritime industry and leveraging on our expertise and experience from our ownership of the Jebel Ali Free Zone. We are consequently well positioned to deliver significant value in the medium term."