P&O Restructuring And Expanding

In 1971 Ford Geddes succeeded as P&O chairman and managed a group comprising of 127 companies. Geddes actively organized a systematic overhaul of P&O’s constitution. The company was split into 5 divisions, which included passenger, bulk cargo, general cargo, a general holding company and European and air transport.

The outcome of the rationalization was gradual, and the company continuously searched for open doors to other sectors. Early in the 1970s, the property market was thriving, motivating P&O to establish a bid for Bovis, a construction company. The bid birthed strong disagreements within the company, deriving somewhat from hesitance towards diversification but, mainly, from the idea that the bid was made too high. This resulted in the resignation of Geddes in 1972. He was succeeded by the third Lord Inchcape as non-executive chairman, and with Alexander Marshal as managing director. In 1974, the company’s acquisition of Bovis pulled through at approximately 50 percent the price of the initial offer.