Report: COSCO shareholders approve OOIL acquisition

COSCO Shipping’s $6.3 billion offer for the parent of Hong Kong-based ocean carrier OOCL is still dependent on several other preconditions, including anti-trust reviews by competition authorities in China, the European Union and the United States.    According to an exchange filing, Chinese state-owned COSCO Shipping Holdings has received shareholder approval for its offer to acquire Orient Overseas International Ltd. (OOIL), the Hong Kong-based parent of ocean carrier Orient Overseas Container Line (OOCL).
   The consent was given at a general meeting of company shareholders held on Oct. 16, Lloyd’s List Intelligence has reported.
   COSCO’s $6.3 billion offer is still dependent on several other preconditions, including anti-trust reviews by competition authorities in China, the European Union and the United States, as well as approval by China’s National Development and Reform Commission, the company said.
   Under the terms of the deal, which was announced July 9, COSCO Shipping is to own 90.1 percent of OOIL, while Shanghai International Port Group will hold the remaining 9.9 percent. COSCO and SIPG are paying $78.67 Hong Kong ($10.07 USD) per share in cash for all outstanding OOIL stock.
   With OOCL’s fleet, COSCO Shipping Lines, a subsidiary of COSCO Shipping Holdings, would control a containership fleet of over 400 vessels with capacity of over 2.9 million TEUs including orderbook, the companies said.
   According to ocean carrier schedule and capacity database BlueWater Reporting, COSCO and OOCL are currently the fourth and seventh largest container carriers worldwide in terms of operating fleet capacity. Based on present figures, the combined entity would operate vessels with an aggregate capacity of 2.21 million TEUs, moving into third place, just ahead of the recently merged CMA CGM and APL with 2.19 million TEUs.
   COSCO Shipping Holdings Vice Chairman Huang Xiaowen said in September that he expects the acquisition to be completed by the end of 2017.