WASHINGTON (AP) — Cosco Shipping Holdings Co., a Chinese conglomerate, will purchase a majority stake in Orient Overseas International to create a global shipping giant, according to a filing with the Hong Kong Stock Exchange.
The filing says Cosco will pay $10.07 per share (HK$78.67), a premium of 38 percent over Orient's Friday share price on the Hong Kong Exchange. The total price tag for the deal will be $6.3 billion (HK$49.2 billion).
The purchase comes as the shipping industry has struggled worldwide in the wake of sluggish global trade and falling rates. Danish shipping firm Maersk acquired Hamburg Sud, a German company, in December, while French shipper CMA CGM bought Singapore-based Neptune Orient Lines last year.
The transaction is subject to antitrust review by Chinese, European and U.S. authorities, the filing said.