China’s COSCO Shipping Holdings and Shanghai International Port Group (SIPG) jointly announced an acquisition of all issued shares of Orient Overseas International Limited for US$6.3bn on Sunday.
If the acquisition is completed, COSCO Shipping Holdings will hold a 90.1 percent share in OOIL, while SIPG will own 9.9 percent.
The combined company of COSCO Shipping Line, a subsidiary of COSCO Shipping Holdings, and Orient Overseas Container Line (OOCL), a wholly owned subsidiary of OOIL, will surpass the CMA CGM Group (2.3 million Twenty-foot Equivalent Units) to become the world's third largest container shipping company, with a total of 2.4m TUEs and 422 ships.
After the acquisition, both CSOCO Shipping Line and OOCL will continue to operate under their own brands.
According to the France-based shipping consultant website Alphaliner, CSOCO Shipping Line is currently the fourth largest container shipping company in the world, with an 8.4 percent share of the market, with Hong Kong-based OOCL ranked seventh.