Korea Line Cancels Bid to Buy Hanjin’s Stake in US Terminal

Image Courtesy: Port of Long Beach

South Korean shipping company Korea Line Corp., part of SM Group, has decided to withdraw from the race for Hanjin Shipping’s stake in US Port of Long Beach container terminal, the firm revealed in its stock exchange filing.

The company withdrew its bid after local media reported it may propose a joint acquisition of the stake in Hanjin’s terminal to Hyundai Merchant Marine (HMM).

Hanjin’s 54% stake in terminal operator Total Terminals International (TTI), which operates two facilities in Long Beach and Seattle, is estimated to be worth around KRW 400 billion (USD 342.5 million).

The remaining 46% stake is held by Swiss-based shipping company Mediterranean Shipping Company (MSC).

Last month, Korea Line inked a KRW 37 billion (USD 31.4 million) agreement to purchase the Asia-US route network from Hanjin. Scheduled to be finalized on January 5, 2017, the deal includes Hanjin’s business network and client information related to the route and subsidiaries and logistics management systems in seven countries.

California’s container terminal also attracted the attention of further two shipping giants as MSC and HMM jointly placed a bid for Hanjin’s stake in the terminal in early December.

Following Hanjin’s court receivership filing in late August 2016, the company started selling assets to decrease its debt.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jun 2017 >>
MTWTFSS
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 1 2

DSM17

Donsö Shipping Meet 2017 is an all inclusive exhibition. Meals, electricity, meeting schedule and banquette dinner is included…

read more >

TOC Europe

TOC (The Terminal Operations Conference) has long been considered best in class by container terminal operators and their suppliers…

read more >

Marine Philippines 2017

The 4th edition of PHILIPPINES MARINE 2017, SHIPBUILD PHILIPPINES 2017 and OFFSHORE PHILIPPINES 2017 is the only specialized Shipbuilding…

read more >

Bunkering Week 2017

IBC’s biennial Bunkering Week is back with its successful series of 3 co-located events: 8th Bunkering in Asia, 4th LNG Bunkering and EMTECH: Ship Emissions Technology Conference.

With a proven track record of bringing together top decision makers from various industry sectors, this remains the go to event for ship owners, fuel suppliers, traders and technology solution providers. Get in-depth and detailed market insights from experts who are taking the decisions, assess peer strategies and give shape to your own in this unrivalled gathering of shipping and marine fuel industry leaders.

Key Highlights for 2017:

* 3 Co-located Conferences

* 12+ Hours of Networking Time

* In-depth Review of Shipping Markets by Segment

* Ship Owner Positions on Emissions Compliance Scenarios

* Pricing Differentials and Availability across Different Fuels

* Technology and Analytics in Fuel Management and Emissions MRV

More info

read more >