China’s Cosco Gets U.S. Security Clearance to Purchase Shipping Rival | Sowoll

Release time: Tuesday, July 10, 2018
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National security review body says it has no outstanding issues related to Orient Overseas deal
 
Cosco’s takeover of Orient Overseas will help the Chinese shipping conglomerate become the world’s third-largest container shipping operator. PHOTO: ALEJANDRO BOLÍVAR/EUROPEAN PRESSPHOTO AGENCY
 
Cosco Shipping Holdings Co.’s takeover of rival Orient Overseas International Ltd. has received the blessing of a U.S. national-security review body, removing a major overhang of the $6.3 billion deal.
 


China’s state-run Cosco said Sunday the Committee on Foreign Investment in the U.S. has cleared its planned takeover of the Hong Kong-based container shipping operator, after Cosco agreed to place a large container terminal in Long Beach, Calif., into a U.S.-run trust and put it up for sale.
 
CFIUS doesn’t have any outstanding “unresolved national security issues” related to the takeover, after the companies signed an agreement with the U.S. departments of Homeland Security and Justice regarding the proposed divestment of the Long Beach terminal, the companies said in a joint statement.
 
Cosco had offered to sell the Long Beach terminal and place it in a U.S. trust to allay U.S. national-security concerns about Chinese ownership of the facility, The Wall Street Journal reported in June.
 
Cosco’s takeover of Orient Overseas, announced in July 2017, will help the Chinese shipping conglomerate become the world’s third-largest container shipping operator.
 
China’s antimonopoly bureau in late June approved the company’s takeover of Orient Overseas. The deal had also received approval from Europe’s antitrust watchdog.
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