Reuters
Published Jul 08, 2018 07:53AM ET
China's COSCO Shipping wins U.S. security clearance for OOIL deal
BEIJING (Reuters) - China's COSCO Shipping Holdings (SS:601919) (HK:1919) said on Sunday a key U.S. review body has cleared its planned $6.3 billion acquisition of shipping firm Orient Overseas International Ltd (OOIL) (HK:0316) on security issues.
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 United States anti-monopoly regulators.
In a regulatory filing on Sunday the company said the U.S. Committee on Foreign Investment in the United States had notified it that it does not have any outstanding security issues following an agreement with the U.S. 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.
There had been concerns the trade fight between Beijing and Washington might end up hampering major deals by U.S. or Chinese firms seeking regulatory approval.
U.S. and China on Friday implemented tariffs against each other's goods, with no signs of a near-term resolution.
COSCO's acquisition of OOIL will see the Chinese shipping giant 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 and comes at a time when the industry is experiencing a recovery after a lengthy downturn.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.