Cosco Shipping, a Chinese conglomerate, will purchase a majority stake in Orient Overseas International to create a global shipping giant, according to a filing with the Hong Kong Stock Exchange.
The filing says Cosco will pay US$10.07 per share, a premium of 38% over Orient’s Friday share price on the Hong Kong Exchange. The total price tag for the deal will be US$6.3 billion.
The purchase comes as the shipping industry has struggled worldwide in the wake of sluggish global trade and falling rates. Danish shipping firm Maersk acquired Hamburg Sud, a German company, in December, while French shipper CMA CGM bought Singapore-based Neptune Orient Lines last year.
The transaction is subject to antitrust review by Chinese, European and US authorities, the filing said.
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