China Cosco Shipping Holdings has announced that it has receive approval by the Committee on Foreign Investment in the US for the deal to take over Hong Kong’s OOIL, the parent of containerline OOCL, after it reached an agreement with the US government to divest the Long Beach container terminal business to an unrelated third party.
The takeover deal was held by the Committee on Foreign Investment for national security concerns about handing over OOCL’s Long Beach terminal concession to Cosco.
Cosco will transfer the Long Beach terminal into a US-run trust while the company will seek a buyer to take over the terminal.
Earlier this month, Cosco said all the preconditions to the takeover deal had been fulfilled after it received approval from the Anti-monopoly Bureau of China.
The $6.3bn takeover deal will make Cosco the third largest ocean carrier in the world, operating a fleet of around 400 vessels with an annual capacity of around 2.7m teu.