{"id":335031,"date":"2017-07-10T06:34:19","date_gmt":"2017-07-10T06:34:19","guid":{"rendered":"http:\/\/citifmonline.com\/?p=335031"},"modified":"2017-07-10T06:34:19","modified_gmt":"2017-07-10T06:34:19","slug":"china-shipper-cosco-to-buy-hk-rival-ooil-for-6-3bn","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/2017\/07\/china-shipper-cosco-to-buy-hk-rival-ooil-for-6-3bn\/","title":{"rendered":"China shipper Cosco to buy HK rival OOIL for $6.3bn"},"content":{"rendered":"
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":[],"categories":[107],"tags":[9060,9061],"yoast_head":"\n