P&O has been given permission from Europe to once again operate our of Dover under its own flag. In what is effectively a de-merger the company will take full control of P&O Stena Line, the joint venture formed in 1998

It is expected to acquire Stena Line's 40 per cent shareholding during the next week. P&O chairman Lord Sterling said: "We are delighted to have received clearance from the EC. We can now proceed with the planned consolidation of our ferry business.

"Managing the businesses together we will be able to maximise growth opportunities across the board and build on what is undoubtedly the strongest brand name in the the industry, P&O Ferries."

A European Commission report says the changes do not raise any competition concerns. It says: "The change in control of P&O Stena Line would not lead to the creation of a dominant position for the provision of freight and passenger services between the Continent and the United Kingdom, regardless of how the market was defined."

P&O operates passenger and ferry services on the North Sea and the Western Channel and transports goods to ports around the world.