Dubai World unit acquires UK-based Gazeley

Dubai World unit acquires UK-based Gazeley 
 
 
Dubai World’s DP World bought P&O in 2006 (AFP)
 
 

 

 

 

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Dubai World, through its subsidiary Economic Zones World (EZW), on Tuesday announced the acquisition of UK-based Gazeley, the Wal-Mart-owned global provider of sustainable logistics space.

 

Although the exact amount of the acquisition was not disclosed, some sources said Dubai World had paid between $588 million (Dh2.1bn) and $784m.

 

Wal-Mart will now concentrate on its retail business but will continue to benefit from Gazeley’s services.

 

“This is part of our global expansion. We will leverage global opportunities to form a unique logistics platform that will bring value to our international clients,” said Jamal Majid bin Thaniah, executive vice-chairman DP World and Group CEO Port and Free Zone World during the official announcement at Burj Al Arab. Gazeley will provide EZW with successful and established operations in the UK and Europe, as well as additional growth opportunities in emerging markets including China, India and Mexico.

 

Gazeley’s customers include many of the world’s largest firms, logistics providers, manufacturers, retailers and their suppliers.

 

Bin Thaniah said that Gazeley’s current business model, which is to develop warehouses and then sell them will be blended with that of EZW, which is building and retaining.

 

He noted that there would be no repeat of the P&O saga in the United States following Dubai World’s acquisition of its operation saying that no major roadblocks were expected after the deal since it is within EU.

 

The current management team at Gazeley will be retained and the integration process in the company will take about six months.

 

Salma Hareb, group executive officer of Economic Zones World said that the deal would ensure that qualitative services are provided to customers worldwide.

 

“We are growing our business to respond to our customer’s needs for better integrated and more effective supply chain solutions.”

 

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