Friday, 14 July 2017 13:10

COSCO acquires OOCL in $6.3B deal

467 cosco oocl

Cosco Shipping Holdings Co. and Shanghai International Port Group have offered $6.3 billion to acquire Orient Overseas Container Line (OOCL). Shareholders are being offered a 31 percent premium over the stock's last closing price and the Tung family, which founded OOCL in 1969, has agreed to sell its 68.7% stake, but the deal still needs regulatory approvals and consent from Cosco's investors.  The combined entity will have a fleet of more than 400 ships, totaling a capacity of 2.9 million TEU including orderbook.  Together Cosco and OOCL would operate the third largest mega-ship fleet and become the dominating player on the Asia Pacific trade and the second-largest mover of US containerized goods.  Cosco has pledged to continue the OOCL brand, something Maersk and CMA CGM did with their respective acquisitions, retaining Hamburg Sud and APL. Over 12 global container carriers will remain in the market by early 2018 compared to 20 in 2016. 

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