COSCO’s bid approved

CHINA’S COSCO Shipping Holdings said yesterday a key US review body has cleared its planned US$6.3 billion acquisition of shipping firm Orient Overseas International.

COSCO said on June 30 that all pre-conditions for the OOIL offer made last year had been met after receiving approval by the Chinese anti-monopoly regulator. It already has approvals from European and US anti-monopoly regulators.

In a regulatory filing yesterday, the company said the US Committee on Foreign Investment had notified it that it does not have any outstanding security issues following an agreement with the US government to divest the Long Beach container terminal business to a third party. COSCO said ownership of the container terminal business will be transferred to a trust while a buyer is sought.

COSCO’s acquisition of OOIL will see the Chinese shipper become the world’s third-largest container shipping line.

The deal is the latest in a wave of mergers and acquisitions in global container shipping that has left the top six shipping lines controlling 63 percent of the market.