After months of rumors, last week Cosco and Shanghi International Port Grp. (SIPG) put in an offer to acquire Orient Overseas International Grp (OOIL) and their container shipping line OOCL. If and when the two companies combine, Cosco plans to hold 90.1% of OOIL’s shares, while SIPG will hold the remaining 9.9% of the shares. OOIL and OOCL are known to be a well run company, and a trusted brand with substantial profits. The container line OOCL has a fleet of 66 vessels, with an estimated teu capacity of 440,000. With the combination of OOLC’s fleet and Coscos fleet of about 550 vessels, Cosco will become the third largest container shipping company in the world.
To read more about the potential merger, click here. If you have any questions, feel free to contact us!