Mermaid reneges from DP World deal
Marine services company Mermaid Marine Australia has gone back on its plan to merge with DP World's wholly owned subsidiary P&O Maritime Services, agreed in December.
Mermaid was to issue 221.9 million shares to DP World in return for 100 percent of the shares in P&O Maritime Services and P&O Polar Australia, resulting in DP World owning 60.4 percent of Mermaid.
The merger would have seen the combined Mermaid Marine-P&O Maritime Services entity listed on the Australian Stock Exchange under the brand name P&O Marine.
The Fremantle-based company reversed its decision after its half-year results soared well above expectations by 320 percent to A$6.3 million ($5 million).
DP World said it was disappointed the deal was not proceeding and that the proposed merger would have been a good fit for both companies, allowing them to explore new markets. However, it said P&O Maritime Services was a strong business and DP World was equally comfortable supporting it to expand on its own.
Mermaid reneges from DP World deal
