Date
22 October 2018
COSCO Shipping has moved another step closer to completing its acquisition of Hong Kong-based Orient Overseas. Photo: Bloomberg
COSCO Shipping has moved another step closer to completing its acquisition of Hong Kong-based Orient Overseas. Photo: Bloomberg

COSCO Shipping wins US security clearance for OOIL deal

COSCO Shipping announced on Sunday that a key US review panel has cleared the firm’s planned US$6.3 billion acquisition of Hong Kong-based shipping firm Orient Overseas International (OOIL).

In a regulatory filing, the Chinese shipping giant said the Committee on Foreign Investment in the United States had notified it that it does not have any outstanding security issues in relation to the deal, Reuters reports.

COSCO got the clearance after it agreed to divest the Long Beach container terminal business to a third party.

Ownership of that container terminal business will be transferred to a trust while a buyer is sought.

COSCO said on June 30 that all pre-conditions for the OOIL offer made last year had been met after receiving approval from the Chinese anti-monopoly regulator.

The company already has approvals from European and US anti-monopoly regulators.

COSCO’s acquisition of OOIL will see the Chinese shipping firm emerge as the world’s third-largest container shipping line, the report noted.

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RC

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