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

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>

<< Jul 2018 >>
MTWTFSS
25 26 27 28 29 30 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 31 1 2 3 4 5

TRANSTEC 2018

TRANSTEC 2018 welcomes participants to explore Russian Ports and Shipping development opportunities…

read more >

Europort 2018

From 15-17 May 2018, the 12th edition of Europort Romania willl take place in the IDU Hall in Constanta…

read more >

SMM 2018

This is a must-attend event – a unique opportunity to meet key players, display business strengths, establish new contacts and exchange…

read more >

Defence Safety Conference Supported by The Defence Safety Authority, UK MoD

The Defence Safety Conference is the first of its kind exclusively dedicated to safety across the defence domain…

read more >