P&O Ferries owner DP World will now attend the government's investment summit on Monday, despite a row over a minister's criticism of the company.
There had been fears they would pull out of the summit – where they were due to announce a £1bn investment – after Transport Secretary Louise Haigh criticized the ferry company and urged consumers to boycott it.
The expansion of the company's London Gateway port in Essex is likely to go ahead, although it is unclear whether this will be announced at the summit.
Whitehall sources said on Saturday there had been “warm engagements” between senior figures at the company and the Government since Sir Keir Starmer distanced himself from his minister's remarks.
The government is hosting the International Investment Summit, where it hopes to attract billions of pounds of investment.
Speaking to the BBC on Friday, Sir Keir said Haigh's comments were “not the Government's view”.
The Prime Minister was reportedly not directly involved in negotiations with DP World and did not personally speak to Haigh about his remarks.
The row began after Haigh described P&O as a “rogue operator” in an interview with ITV on Wednesday, after laying off almost 800 seafarers in 2022 and replacing them with cheaper workers.
Asked if she used the ferry service, she said: “I have been boycotting P&O Ferries for two and a half years and would encourage consumers to do the same.”
DP World insisted the move was necessary for the ferry operator's survival and to secure thousands of jobs.
Haigh's comments in the interview coincided with the Department for Transport's announcement of new legislation aimed at protecting seafarers from what it described as “rogue employers”.
In the announcement, Deputy Prime Minister Angela Rayner reportedly described P&O Ferries' previous actions as “scandalous”.
The row revealed a tension between the new government's desire to attract business and strengthen workers' rights.
The government had previously said it was in talks with DP World about participating in the summit.
DP World said the London Gateway port expansion would bring hundreds of jobs to Thurrock.
