EU Okays COSCO’s OOCL Takeover

The European Commission has given the green light to COSCO Shipping’s bid to take over Orient Overseas (International) Limited.

Under the offer launched in July, COSCO Shipping Holdings and Shanghai International Port Group (SIPG) seek to acquire all issued OOIL shares at an offer price of HKD 78.67 (USD 10.07) in cash, totaling in USD 6.3 billion.

On completion of the transaction, COSCO would hold 90.1%, while SIPG would hold 9.9% of OOIL.

“The joint offerors are pleased to announce that with respect to anti-trust review in the EU under the EU Merger Regulation, on December 5, 2017, the European Commission made a decision to allow the offer to proceed. Accordingly, pre-condition (c) has been fulfilled,” a joint statement reads.

The approval of the bid follows the clearance from COSCO Shipping’s shareholders received in October and that of  State‑owned Assets Supervision and Administration Commission (SASAC) in September.

The combined entity, if the merger is completed, would become the world’s third largest container carrier, according to shipping consultancy Drewry.

Specifically, the duo would have a combined fleet of 400 vessels operated over a much-expanded network, with the capacity exceeding 2.9 million TEUs including orderbook, pushing CMA CGM from its spot.

COSCO and SIPG said they would continue to work on meeting the remaining pre-conditions for the deal to be finalized.

World Maritime News Staff

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jun 2019 >>
MTWTFSS
27 28 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

World Gas Series: Morocco Summit

Bringing together key players in the gas value chain in Morocco, the World Gas Series:

read more >

GreenTech in Shipping USA Forum 2019

GreenTech in Shipping USA Forum is an event for Maritime leaders who want to unlock successful business formula of the industry!

read more >

Shipping Transformation Asia

Shipping Transformation Asia will provide a platform for future-focused discussion in the shipping,…

read more >

Global Sustainable Shipping Forum 2019

The event will provide valuable insights from conference sessions, great networking opportunities and will offer…

read more >