Cosco continues spending spree, acquiring $200m worth of containers

Cosco continues spending spree, acquiring $200m worth of containers

Hong Kong-listed Cosco Shipping Development subsidiary Florens Container Investment has entered into a contract with CLC II to acquire containers for $200.38m.

Cosco didn’t disclose the ultimate owner of CLC II but said the sellers are third parties independent of the company.

The acquisition will be funded by both internal resources and external debt financing.

“As the company strives to develop its container leasing business in the long run and become an industry-leading leasing company with competitive edge on the basis of the current leasing business, the acquisition is in line with the business of the group and will expand the scale in its container leasing business. In addition, the acquisition would increase the proportion of self-owned containers of the group and ensure that the group’s demand for containers is satisfied,” the company said in a release.

Earlier this week, China Cosco Shipping Group and SIPG jointly announced a deal to take over OOIL, the parent of Hong Kong shipping line OOCL. The combined Cosco Shipping Lines and OOIL will operate more than 400 vessels over an network with capacity exceeding 2.9m teu including ships on order.

Jason Jiang

Jason worked for a number of logistics firms following his English degree, then switched this hands-on experience to writing and has since become one the most prolific writers on the diverse China logistics industry writing for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week. Jason’s access to the biggest shippers with business in China has proved an invaluable source of exclusives.

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