China Approval Brings Cosco Shipping-OOIL Deal Closer
By Costas Paris | June 29, 2018 12:23 p.m. ET
China’s regulatory approval of Cosco Shipping Holdings Co. Ltd.’s $6.3 billion takeover of Orient Overseas (International) Ltd. 0316 0.06% brings the latest step in shipping consolidation a step closer to completion.
Beijing’s antimonopoly bureau said in a filing that “all the Pre-Conditions to the Offer have been fulfilled.” The thumbs-up is important because the buyout includes the OOIL-run Long Beach Container Terminal, a sprawling cargo-handling site at California’s Port of Long Beach and one of the biggest U.S. gateways.
The approval suggests Chinese officials are confident the deal will pass a U.S. security review now that Cosco submitted a plan to sell the cargo terminal.
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