COSCO Shipping Holdings, with the help of Shanghai International Port Group (SIPG), has offered USD 6.3 bln to buy a majority stake in Orient Overseas Container Line (OOCL).
Once the deal is cut between the two members of the Ocean Alliance, the combined fleet of COSCO and OOCL will be the world’s third largest, offering over 2.43 mln TEU of capacity.
According to the agreement, Orient Overseas International Limited (OOIL), the mother company of OOCL, will keep its corporate headquarters in Hong Kong and continue its independent share listing. There’re won’t be any staff reductions for at least two years, too. Also, OOCL will continue its operations as a standalone brand.
The transaction is subject to regulatory approval.
"We are proud of the business we have built and the people who have been building it. This decision has been carefully considered and we believe it helps ensure the future success of OOIL. We are confident that COSCO is the right partner for us," Andy Tung, OOCL's CEO, said.