OOCL takeover gets green light from Cosco shareholders

Shareholders of Cosco Shipping Holdings this week approved the Chinese carrier’s giant $6.3 billion takeover of Orient Overseas (International) Ltd., leaving just a few regulatory approvals to secure before the deal will be completed.

OOIL is the Hong Kong-listed parent company of OOCL and after the takeover, the Cosco-OOCL carrier will step over CMA CGM to become the world’s third largest container line. Cosco will hold 90.1 percent of OOIL and the Shanghai International Port Group will hold 9.9 percent.

The takeover is the latest piece of consolidation that has completely reshaped the container shipping industry over the past two years, but the need for scale is continuing to drive mergers and acquisitions. It remains to be seen exactly how the new Cosco-OOCL tie-up will play out, although both companies have pledged to retain their individual brands.