Only a fortnight ago the path towards oligopolisation in container shipping took another step forwards with the proposed $6.3 billion sale of Hong Kong-based Orient Overseas International Ltd. (OOIL) to Chinese state-owned Cosco Shipping Holdings Ltd. (Cosco) and Shanghai International Port Group Co. (SIPG).

On the completion of the deal, Cosco will hold 90.1% while SIPG will hold the remaining 9.9% stake in OOIL. The joint buyers said they will keep the OOIL branding, retain its listed status and maintain the companies’ global headquarters in Hong Kong along with all management. Employees will retain their existing compensation and benefits, and none will lose jobs as a result of the transaction for at least 24 months after the offer close.

About Drewry Maritime Advisors

Drewry Maritime Advisors provide expert advice to Owners, Operators, Financial Institutions, Port Authorities, Terminal Operators and Governments covering the full spectrum of commercial and technical facets across all maritime and shipping sectors. Our professionals include a mix of senior executives, industry veterans, economists and technical experts who between them have a wealth of practical industry experience.

We provide sector-based expertise from strategic planning, market analysis, financial modelling and analysis to operational assessment and commercial due diligence.