As Canadian owner Brookfield Asset Management prepares to auction off PD Ports, a Teesside-based operator with 1,400 staff across 11 UK locations, potential bidders are lining up for the £1.2 billion sale. Investment banks have reportedly begun reaching out to interested parties, with Peel Ports and Macquarie said to be among those considering a bid.
The South Tees Development Corporation (STDC), chaired by Lord Ben Houchen, a close ally of former prime minister Boris Johnson and the popular local Tory mayor, is also preparing to submit a joint venture bid for PD Ports. However, there are concerns within Houchen’s camp that they may be excluded from the process due to a previous legal dispute between Houchen and Brookfield during a cancelled auction of PD Ports in 2021.
Other potential suitors contacted by advisers from Royal Bank of Canada and CIBC include Associated British Ports and DP World, the Dubai-based owner of the London Gateway port and P&O Ferries.
PD Ports, which has a history dating back to the creation of the Tees Navigation Company in 1808, currently generates an annual EBITDA of £100 million and holds 2,400 acres of freehold property. The company is well-positioned to contribute to the industrial revitalisation of the northeast through Teesside’s freeport status and its proximity to Teesworks, a joint venture between STDC and two local businessmen to redevelop a former steelworks site.
The sale of PD Ports is expected to attract significant interest from both domestic and international investors, given its strategic importance and growth potential in the region.
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