World News
COSCO Shipping Set to Acquire OOCL
COSCO Shipping Lines Co., Ltd. (COSCO Shipping Lines) has announced that COSCO Shipping Holdings Co. Ltd. (COSCO Shipping Holdings) and Shanghai International Port (Group) Co., Ltd. (SIPG) have made a pre-conditional voluntary general offer to all shareholders of Orient Overseas (International) Limited (OOIL), principal of Hong Kong-based Orient Overseas Container Line (OOCL)
"The transaction marks the latest consolidation in the global maritime industry. It is believed that the combination of COSCO SHIPPING Holdings and OOIL can deliver a stronger competitive advantage," said COSCO Shipping Lines of the deal on Sunday.
The acquisition is worth approximately $6.3 billion, as Reuters reports.
According to data from Alphaliner, the deal is set to see COSCO Shipping become the third largest box shipper by capacity, with the company noting that, including the orderbook, it will have more than 400 vessels and capacity exceeding 2.9 million TEU.
After the completion of the offer, COSCO Shipping Holdings will retain the listing status of OOIL, while COSCO Shipping Lines and OOCL will continue to operate under their respective brands.
"The outstanding management system and service capabilities, as well as established global shipping network, of COSCO Shipping Lines and OOCL can provide customers of both COSCO Shipping Lines and OOCL with more diversified product offerings and better service experience," said COSCO Shipping Lines of the deal.
Assuming all OOIL shareholders tender their shares, the deal will see COSCO Shipping Holdings acquire 90.1 percent of the company, while SIPG will hold 9.9 percent.
In January, COSCO Shipping and Orient Overseas (International) Limited (OOIL) denied reports that they were in negotiations for a take over of OOCL.
As Ship & Bunker reported in January, Alphaliner has said that OOCL has long been seen as "a prize catch" because of its consistently profitable container shipping operations and strong yield management.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 641.00 | 4.00 | 762.00 | 5.50 |
| Rotterdam | 599.00 | 1.00 | 751.00 | 0.50 |
| Houston | 629.50 | 2.00 | 802.50 | 6.50 |
| Fujairah | 647.50 | 2.00 | 883.50 | 5.50 |
| Global 20 Ports Average | 661.50 | 3.50 | 859.00 | 5.00 |
| Global 4 Ports Average | 629.50 | 1.00 | 799.50 | 1.50 |
| Global Average Bunker Price | 719.00 | 3.50 | 915.00 | 7.50 |
Popular Now More
-
Apr 23The ship had come to Singapore from St Petersburg. -
Apr 22The 46,000 DWT MR2 chemical tanker Green Land was arrested at about 3:30 PM on April 17. -
Apr 22Iranian fuel oil has been widely reported to have been resold in the bunker markets of ports in the region for years, as well as being exported further afield.