Gulf-state backed Dubai Ports World declared victory in a £3.9 billion bidding war for ports group P&O after Singaporean rival port operator PSA International withdrew from the field.
Dubai Ports said it was confident P&O shareholders would back its £3.9 billion bid at a meeting this week, giving it control of P&O ports on six continents and creating the world's third-largest ports group.
"We are waiting for the shareholder vote. Yes, we are confident, we have always been confident," Dubai Ports Chairman Sultan Ahmed Bin Sulayem said.
PSA International said earlier it would withdraw from the race, sending P&O shares 3.9 per cent lower to 516-3/4 pence by 10.26 a.m., slightly below the Dubai Ports offer of 520p.
P&O shares, which have jumped more than 70 per cent since announcing it was in takeover talks in October, were trading higher in recent weeks on anticipation of a higher PSA bid.
"PSA has decided not to increase its offer and will therefore no longer pursue the acquisition of P&O," PSA said in a statement.
P&O, a 165-year-old maritime icon formed at the height of Britain's sea power, reiterated its recommendation that shareholders accept the Dubai Ports offer. Shareholders vote on the offer today.
"The combination of P&O and DP World has compelling strategic logic and will create significant opportunities for both businesses and their employees," P&O Chairman John Parker said in a statement.
Dubai and Singapore had wrestled for control of P&O's key container ports in Asia, Europe and the Americas, following a three-year boom in shipping on the back of growth in Chinese demand, expanding trade and a global economic recovery.
A bidding war broke out last month when PSA made an offer of 470p per share, topping Dubai Ports' November offer of 443p. Dubai Ports swiftly responded with its knockout 520p offer.
"For PSA to pay more than this price would not be compatible with commercial business sense and PSA's future success," PSA said in a statement to the London Stock Exchange.
PSA is owned by state investment group Temasek.
A successful bid by PSA would have created the world's largest ports group.
Dubai Ports' bid has already been cleared by key regulators.