COSCO SHIPPING Holdings Co., Ltd. has completed its acquisition of shares in Orient Overseas (International) Limited from controlling shareholders.
As a result, COSCO SHIPPING Holdings becomes the controlling shareholder of OOIL, parent company of OOCL.
According to COSCO SHIPPING Holdings, COSCO SHIPPING Lines and OOCL will complement each other and jointly develop products and services for customers.
Upon completion of the transaction, the two liner companies will jointly operate 409 shipping routes around the world, with a total capacity of 2.77 million TEUs. With 19 vessels with a total capacity of about 330,000 TEUs on order, the two shipping lines will have a fleet of over 400 ships with a combined capacity of 2.93 million TEUs by the end of 2018.
COSCO SHIPPING Holdings becomes the third-largest container shipping company. It said that it would work to implement four major strategic initiatives to realize new growth: optimization of the global and regional network, digital transformation, end-to-end services enhancement and a dual-brand model.
As part of the acquisition, Xu Lirong has been appointed as an executive director, the chairman of the board and the chairman of the executive and nomination committees of OOIL. Xu is currently the chairman of the board and the secretary of the party committee at China COSCO Shipping Corporation Limited.
Huang Xiaowen has been appointed as an executive director and the new chief executive officer of OOIL. Huang is currently the deputy general manager and a party committee member of China COSCO Shipping Corporation Limited. He is also an executive director and the vice chairman of COSCO SHIPPING Holdings, the chairman of the board of directors and a non-executive director of COSCO SHIPPING Ports Limited, the chairman of the board at COSCO SHIPPING Lines, the chairman of the board at COSCO SHIPPING Energy Transportation Co., Ltd., the chairman of the board at COSCO SHIPPING Bulk Co., Ltd., and a director of several other China COSCO Shipping subsidiaries.
COSCO SHIPPING Holdings Co. Ltd. and Shanghai International Port (Group) Co., Ltd. announced in July 2017 that they had made a pre-conditional voluntary general offer to acquire all issued shares in OOIL, with COSCO SHIPPING Holdings to hold a 90.1% stake and SIPG to hold 9.9%.