World News
OOIL and Cosco Shipping Deny Talks Toward OOCL Acquisition
China Cosco Shipping Corporation Limited (Cosco Shipping) and Orient Overseas (International) Limited (OOIL) today denied reports that they are in negotiations for Cosco Shipping to take over OOIL subsidiary Orient Overseas Container Line (OOCL).
As Ship & Bunker reported yesterday, media reports this week have suggested that Cosco Shipping has been preparing a $4 billion offer to acquire OOCL.
"The company wishes to clarify that the company and OOCL is not aware of, nor is it involved in any bid relating to the company or OOCL," stated OOIL Friday.
A spokesperson for Cosco Shipping further confirmed to Reuters that the reports of a potential OOCL acquisition were "incorrect."
While OOIL shares were boosted earlier this week on the rumours of a potential deal, they fell by nearly 10 percent on the companies' denial of a potential deal.
"Shareholders and potential investors of the Company should exercise caution when dealing in the shares of the Company," noted OOIL in its statement.
Both CMA CGM S.A. (CMA CGM) and Evergreen Marine (Evergreen) have also been pointed to as potential contenders to acquire OOCL - a suggestion that has been since dismissed by Evergreen as "market rumour," and has yet to receive comment from CMA CGM.
As Ship & Bunker has reported, Alphaliner says OOCL has long been seen as "a prize catch" because of its consistently profitable container shipping operations and strong yield management.
However, Martin Rowe, managing director of shipping services firm Clarkson Platou Asia Hong Kong, notes: "with the family members apparently committed to the business and loads of cash in the bank, why should the situation change?"
OOCL is not the only box shipping major to be the subject of recent acquisition rumours, with Taiwan's Yang Ming Marine Transport (Yang Ming) earlier this week also batting away suggestions that it would consider a merger with another line.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| Rotterdam | 602.00 | 0.50 | 748.00 | 6.00 |
| Houston | 624.00 | 5.00 | 792.00 | 3.50 |
| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
| Global 20 Ports Average | 662.00 | 2.00 | 855.00 | 1.50 |
| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
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