COSCO Preparing $4 Billion Bid for OOCL: Reports

by Ship & Bunker News Team
Friday January 20, 2017

China Cosco Shipping Corporation Limited (Cosco Shipping) is preparing a $4 billion offer to acquire Orient Overseas Container Line (OOCL), Wall Street Journal reports.

A source close to the matter is said to have confirmed that the discussions have been ongoing "for months."

The news comes just a week after Alphaliner suggested that OOCL may be on the verge of becoming the latest box shipping major to be swallowed up by consolidation.

"It is not a surprise if the Chinese government steps in to orchestrate a marriage between a mainland shipping giant and a Hong Kong counterpart," Xiong Hao, assistant general manager of Shanghai Jump International Shipping Co Ltd, told Chinese media.

Both CMA CGM S.A. (CMA CGM) and Evergreen Marine are said to be potential contenders to acquire OOCL, but Cosco Shipping is noted to be more advanced in the process.

According to Alphaliner data, an OOCL takeover would boost Cosco Shipping's share of the global container market to 10.8 percent from its current 8 percent, moving the company from its current position as the fourth largest global container carrier to the third.

As Ship & Bunker reported last week, compared to 20 a year ago, only 17 large scale international container carriers remain as of January 2017.