DOCKS at Chatham and Sheerness look set to be sold as part of a £771 million take-over deal, it has been revealed.

Mersey Docks and Harbour Company, which owns the ports of Chatham and Sheerness, said the proposed take over by Peel Ports was good news for its shareholders.

Peel, which also runs Clydeport, on the west coast of Scotland, and the Manchester Ship Canal, will acquire the ports of Chatham, Sheerness, Liverpool, Heysham, Lancs.

Peel also owns the Glasgow Harbour development, one of the largest in the UK.

The deal, which still requires the backing of the Mersey shareholders, is expected to be completed in late July. Peel Ports already owns 25 per cent of the Mersey company.

Gordon Waddell, chairman of Mersey, said:"We believe that the offer from Peel represents an attractive outcome for shareholders."

Peel Ports chairman John Whittaker said: "The combination of Mersey with Peel's existing port operations offers exciting future opportunities for both groups."