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P&O invests pounds 50m in German line

Jake Lloyd-Smith
Wednesday 29 September 1999 23:02 BST
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P&O STEPPED up its drive to re-focus on shipping yesterday, setting up a joint venture to develop the German cruise market. P&O has teamed up with Hamburg-based shipping magnate Horst Rahe, who owns the ocean cruise business Arkona Touristik, to form Aida Cruises.

The new company, 51 per cent held by P&O, will run Arkona's 1,200 berth Aida and order two more 1,270-berth vessels for delivery by 2003.

P&O will make an initial investment of 150m German marks (pounds 50m) and has the option to acquire the rest of Aida Cruises from the Rahe family after the new vessels are delivered.

P&O believes that the German market for ocean cruises remains underdeveloped. It said one in 270 Germans takes a cruise each year, compared with one in 94 Britons and one in 43 Americans.

P&O shares rose 1p to 921p.

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