In deal that could be valued at approximately $6 billion, Cosco Group has agreed to purchase it's shipping rival Orient Overseas Container Line Co. The takeover will make Cosco the world’s third-biggest container line after Maersk Line and the Mediterranean Shipping Co.
The Wall Street Journal reported in June 2017 that the two sides were in advanced negotiations, but were stuck over pricing. Cosco was reported to want to pay slightly more than $4 billion for Orient Overseas Container Line Co, however a new deal was struck that will likely include other assets of the shipping line’s parent, Orient Overseas (International) Ltd.
As of December 2016, Orient Overseas Container Line Co owned or leased 96 vessels and operated container terminals at ports in Taiwan and Long Beach (USA). Orient Overseas (International) Ltd also owns investments in real estate in China and Hong Kong, as well as an office tower in the financial district of New York City.
The Chief Executive of Orient Overseas announced that the deal would take approximately six months to be approved by global regulators and that Cosco would not delist the parent company.