COSCO and OOCL – a big, well-managed world leader in the making

Analysis: COSCO and OOCL – a big, well-managed world leader in the making
Alessandro Pasetti 13/07/2018

COSCO Shipping Holdings has no place to hide now the takeover of Orient Overseas International Lines (OOIL) and its container line arm, OOCL, has gone through.

Financially, the tie-up justifies its existence as a multi-billion US dollar business with a market cap of Rmb43.5bn ($6.5bn) in Shanghai, but it is worth considering that COSCO would likely be worth just a fraction of that had its OOIL cash deal – which valued the target’s equity at $6.3bn – not happened.

But what’s next?

As its focus now shifts to the integration of OOCL, its cash management and funding plan in the past 12 months is indicative of what we should expect through to 2019.

Get going

Having fulfilled all the pre-conditions, there remained some minor issues with the US Committee on Foreign Investment in the United States (CFIUS) until last week.

The opportunity offered by the consolidation of OOIL was simply too good to pass up, and it simply had to shell out top dollar.

more...https://theloadstar.co.uk/analysis-cosco-oocl-big-well-managed-world-lea...