[ P&O Nedlloyd Acquires Blue Star Line ]

P&O Nedlloyd is pleased to announce that it is to acquire the containe
r shipping business of Blue Star Line Limited and its subsidiaries for
approximately Pnds 60 million. The acquisition is subjuct to due dili
gence and is expected to take two months to complete. It will be finan
ced out of P&O Nedlloyd’s exiting facilities.
Blue Star Line has a strong position in the market for refrigerated ca
rgo from the Southern to the Northern Hemisphere. It has an excellent
name and a long history of working together with P&O Nedlloyd and its
parent companies.
Blue Star Line owns 11 ships with a total container carrying capacity
of approximately 15,000 teus. It has 4 chartered ships with a capacity
of approximately 7,000 teus. It owns approximately 10,000 teu contain
ers. Throughput in 1997 totalled 186,000 loaded teus.
Blue Star Line operates between Australia/New Zealand and North Americ
a, the Middle East and Asia. It also has routes between North Europe/M
editerranean and Central and South America. There are many areas of ov
erlap with some of the existing business of P&O Nedlloyd. The acquisit
ion in these areas and to make substantial cost savings. In order area
s the Blue Star Line business will complement that of P&O Nedlloyd.
Commeting on the acquisition, Tim Harris, Chief Executive officeer of
P&O Nedlloyd, said in London. “ This is a good acquisition for P&O Ne
dlloyd. It will further reinforce our already strong position in the N
orth-South reefer trades which are a positive area of our business. We
know Blue Star Line well and I am confident that their business can b
e readily integrated with ours.”
As Joint Chairman of P&O Nedlloyd, Lord Sterling and Leo Berndsen said
: “We have always made clear that there will be further consolidation
in liner shipping. Blue Star Line is a fine British shipping company
with a great history. The acquisition will further strengthen our stra
tegy for P&O Nedlloyd.”