THE takeover of Teesport operator PD Ports by Australian investment fund Babcock and Brown (BBI) was completed yesterday.

BBI bid £337m for the company, beating a £320m takeover bid from rival Australian consortium Endeavour Ports. Shareholders are expected to be paid in the next two weeks.

PD Ports is Britain's second largest port by volume and plans to build a £300m container terminal on the Tees, which could bring 7,000 jobs to the region.

A spokesman for the port said the change of ownership would mean a new board of directors, but that it would very much be "business as usual".

He said: "We have to talked to them in detail about the planned expansion of the port and at this stage they seem very keen."

A planning application for the development is expected to be submitted, with consultations planned for early March.

Babcock and Brown operates from 18 offices across Australia, the US, Europe, Asia and Africa.

Its infrastructure division, which has made the offer for PD Ports, is one of five operating groups and counts airports and toll roads among its businesses. It is also the owner of Australia's second largest coal-exporting port.

The purchase marks the latest development in European port operations after a number of recent takeovers.