Cosco takeover of OOCL surmounts last hurdle

The takeover of Orient Overseas International, the parent company of Hong Kong’s Orient Overseas Container line, by China Cosco Holdings finally appears to be a done deal.

Last Friday, just a day ahead of the deadline, Cosco received approval from the Anti-monopoly Bureau of China for the takeover to go ahead. Following the announcement Cosco said all preconditions to the takeover had finally been fulfilled.

Antitrust regulators in the US and EU have already approved Cosco’s takeover deal worth US$6.3bn. However, OOIL’s ownership of its Long Beach terminal concession had appeared to be a sticking point with the US Committee on Foreign Investment. But in June this year Cosco offered to put the terminal into a third party US-run trust for up to a year until the company can find a buyer acceptable to the Committee.

Also last week, Cosco took delivery of the third of four 20,000 teu containerships from compatriot shipping yard Natong Cosco KHI Ship Engineering (NACKS). The ultra large container vessel, Cosco Shipping Capricorn is a sister ship of Cosco Shipping Aries and Cosco Shipping Leo.

Cosco Shipping Capricorn will enter service on the firm’s Mediterranean route in Europe from mid-July

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