Chinese shipping giant Cosco is set to buy its Hong Kong rival OOIL for $6.3bn (\u00a34.9bn).<\/p>\n
The deal would make Cosco the world’s third-biggest shipping company, with more than 400 vessels.<\/p>\n
OOIL’s majority owner has accepted the bid, though the sale will still need regulatory approval.<\/p>\n
It would be the latest in a wave of mergers, which has left the top six shipping lines controlling almost two thirds of the market.<\/p>\n
OOIL’s subsidiary OOCL is currently the world’s seventh largest shipping line, with 3.2% of global market share, according to shipping database Alphaliner.<\/p>\n
Cosco is offering $10.07 per share, a 38% premium over OOIL’s closing price on Friday.<\/p>\n
The family of Hong Kong’s first Chief Executive Tung Chee-hwa founded OOIL, and still holds a 69% stake in the company.<\/p>\n
They have accepted the offer, but it still needs the approval of Cosco shareholders, as well as US and Chinese regulators.<\/p>\n
Overcapacity and slowing demand is leading to major changes in the shipping industry.<\/p>\n
Korean shipping giant Hanjin filed for bankruptcy last year, while France’s CMA CGM bought Singapore’s Neptune Orient Lines.<\/p>\n
–<\/p>\n
Source: BBC<\/p>\n","protected":false},"excerpt":{"rendered":"
Chinese shipping giant Cosco is set to buy its Hong Kong rival OOIL for $6.3bn (\u00a34.9bn). The deal would make Cosco the world’s third-biggest shipping company, with more than 400 vessels. OOIL’s majority owner has accepted the bid, though the sale will still need regulatory approval. It would be the latest in a wave of […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":[],"footnotes":""},"categories":[107],"tags":[9060,9061],"class_list":["post-335031","post","type-post","status-publish","format-standard","hentry","category-international","tag-cosco-shipping","tag-singapores-neptune-orient-lines"],"_links":{"self":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/335031","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=335031"}],"version-history":[{"count":0,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/335031\/revisions"}],"wp:attachment":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=335031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=335031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=335031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}