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China shipping firm Cosco to buy HK rival OOIL for $6.3bn | |
(about 7 hours later) | |
Chinese shipping giant Cosco is set to buy its Hong Kong rival OOIL for $6.3bn (£4.9bn). | Chinese shipping giant Cosco is set to buy its Hong Kong rival OOIL for $6.3bn (£4.9bn). |
The deal would make Cosco the world's third biggest shipping company, with more than 400 vessels. | The deal would make Cosco the world's third biggest shipping company, with more than 400 vessels. |
OOIL's majority owner has accepted the bid, though the sale will still need regulatory approval. | OOIL's majority owner has accepted the bid, though the sale will still need regulatory approval. |
It would be the latest in a wave of mergers, which has left the top six shipping lines controlling almost two thirds of the market. | It would be the latest in a wave of mergers, which has left the top six shipping lines controlling almost two thirds of the market. |
Overcapacity struggles | Overcapacity struggles |
OOIL's subsidiary OOCL is currently the world's seventh largest shipping line, with 3.2% of global market share, according to shipping database Alphaliner. | OOIL's subsidiary OOCL is currently the world's seventh largest shipping line, with 3.2% of global market share, according to shipping database Alphaliner. |
Cosco is offering $10.07 per share, a 38% premium over OOIL's closing price on Friday. | Cosco is offering $10.07 per share, a 38% premium over OOIL's closing price on Friday. |
The family of Hong Kong's first Chief Executive Tung Chee-hwa founded OOIL, and still holds a 69% stake in the company. | The family of Hong Kong's first Chief Executive Tung Chee-hwa founded OOIL, and still holds a 69% stake in the company. |
They have accepted the offer, but it still needs the approval of Cosco shareholders, as well as US and Chinese regulators. | They have accepted the offer, but it still needs the approval of Cosco shareholders, as well as US and Chinese regulators. |
Overcapacity and slowing demand is leading to major changes in the shipping industry. | Overcapacity and slowing demand is leading to major changes in the shipping industry. |
Korean shipping giant Hanjin filed for bankruptcy last year, while France's CMA CGM bought Singapore's Neptune Orient Lines. | Korean shipping giant Hanjin filed for bankruptcy last year, while France's CMA CGM bought Singapore's Neptune Orient Lines. |
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