US grants security clearance to COSCO - OOIL deal

Posted by Daily Shipping Times on 11-07-2018        Tweet

SHANGHAI: The US-based interagency committee has cleared COSCO Shipping Holdings’ proposed acquisition of Orient Overseas International Ltd (OOIL).

As informed by COSCO, the Committee on Foreign Investment in the United States (CFIUS) has determined that “there are no unresolved national security issues related to the transaction.”

This follows a national security agreement inked with the US Government to divest Long Beach Container Terminal to an unrelated third party. Pending the disposal, the ownership of the terminal located at the Port of Long Beach will be transferred to a trust not being a shareholder of OOIL.

Under the offer announced last year, COSCO and Shanghai International Port Group (SIPG) seek to buy all issued OOIL shares for USD 6.3 billion. On completion of the transaction, COSCO would hold 90.1%, becoming the world’s third-largest container shipping company with a fleet of around 400 vessels.

COSCO has so far secured approvals from the EU, US and Chinese regulators.