Subscribe to our free daily newsletters
. Earth Science News .

Subscribe to our free daily newsletters

China's COSCO in multi-billion buyout of Hong Kong rival
by Staff Writers
Hong Kong (AFP) July 10, 2017

Chinese shipping giant COSCO has offered $6.3 billion to buy Hong Kong's rival firm Orient Overseas International Ltd, which would make it one of the world's largest container liners in an industry dominated by European players.

The move is the latest in a consolidation wave following the 2008 financial crisis, which led to too many vessels chasing too little cargo and shrinking freight rates.

Industry leaders are hoping the string of mergers will boost rates once more.

COSCO-OOIL would become the third-largest shipping player behind Danish conglomerate Maersk and Mediterranean Shipping Company, headquartered in Switzerland, if the takeover is given the green light.

The completion of the buyout will depend on approval from regulators and COSCO shareholders, the companies said in a statement Sunday.

Shares in OOIL were up 19 percent in afternoon trading in Hong Kong on Monday, while COSCO rose five percent.

State-owned COSCO said it will pay shareholders of the smaller privately owned OOIL HK$78.67 per share in cash, a 31 percent premium over the stock's last closing price, according to Bloomberg News.

The family of former Hong Kong leader Tung Chee-hwa has accepted the offer for its 68.7 percent stake in OOIL and is projected to make more than $4 billion out of the deal.

"This decision has been carefully considered and we believe it helps ensure the future success of OOIL," said Andy Tung, the Hong Kong firm's executive director, in a statement.

COSCO chairman Wan Min said the company remained "committed to enhancing Hong Kong as an international shipping centre".

"We respect OOIL's management team and its expertise, not to mention its people, brand and culture," he added.

Once the deal is completed, COSCO will hold 90.1 percent of OOIL, while Shanghai International Port will hold 9.9 percent.

But the companies will continue to be listed separately on the Hong Kong exchange and OOIL's global headquarters will remain in the city.

COSCO also vowed to retain all employees and their benefits, the statement said.

The move would give the company more than 400 ships and a capacity of 2.9 million containers, according to independent research company Crucial Perspective.

Jason Chiang, Singapore-based director at Ocean Shipping Consultants, predicted the COSCO buyout would be the last of the major mergers.

"Bad times in the industry made M&As necessary but with rates recovering that need will become less," he told Bloomberg.

In October 2016 Japan's three biggest shipping companies, Nippon Yusen Kabushiki Kaisha, Kawasaki Kisen Kaisha and Mitsui O.S.K., agreed to merge, with combined operations set to start in April 2018.

Last year, France's CMA CGM completed a takeover of Singapore's Neptune Orient Lines while Germany's Hapag-Lloyd and United Arab Shipping merged this year.

South Korea's titan Hanjin Shipping sank into bankruptcy in 2016, further slimming down the field in a reflection of the slump in global trade and a growth slowdown in China.

China's Wanda agrees to mammoth asset sale to slash debt
Shanghai (AFP) July 10, 2017
Chinese conglomerate Wanda said Monday it will sell dozens of hotels and other projects to developer Sunac China Holdings for $9.3 billion to slash debt, two weeks after acknowledging it was being probed following heavy overseas investments. It is China's largest-ever property deal, according to Bloomberg News, and will see Sunac buy 76 hotels outright and take a 91 percent stake in 13 other ... read more

Related Links
Global Trade News

Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Contributor
$5 Billed Once

credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly

paypal only

Comment using your Disqus, Facebook, Google or Twitter login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

In IS-held Raqa, parched civilians risk lives for water

EU ministers pledge steps to tackle migrant flood

Holiday weekend leaves more than 100 gunfire victims in Chicago

Ex-bosses stand trial over 2011 Fukushima crisis in Japan

Sorting complicated knots

Engineers find way to evaluate green roofs

Nature-inspired material uses liquid reinforcement

Feel the heat, one touch a time

Surveying sea floor animals for offshore renewable energy

New data shows extreme coastal sea levels more likely

UNESCO keeps Great Barrier Reef off 'in danger' list

Rivers do not have same rights as humans: India's top court

New study shows West Antarctic Ice Sheet loss over the last 11,000 years

Figuring out how fast Greenland is melting

Huge Antarctic ice block poised to snap off

Climate change impacts Antarctic biodiversity habitat

Warmer Arctic harms crops in US, Canada: study

Spain hit by deadly bacteria threatening olive trees

Customs grab 122 tonnes of fake pesticide: Europol

Incremental discovery may one day lead to photosynthetic breakthrough

Fresh quake rocks Philippine island

Japan floods death toll rises to 20

Record rain pounds Paris, shutters metro stations

Panic, damage after deadly Philippine quake

AU chair questions US stance on African peacekeeping

3 killed in north Mali clashes as UN condemns violence

Gambian army 'hostile elements' working against government

I.Coast's Comoe park no longer endangered: UNESCO

Researchers document early, permanent human settlement in Andes

Analysis of Neanderthal teeth grooves uncovers evidence of prehistoric dentistry

Study: Potentially no limit to human lifespan

Beyond bananas: 'Mind reading' technology decodes complex thoughts

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement