COSCO Shipping to buy $2.7 billion port assets from parent, in $2.9 billion ship building deal

COSCO Shipping to buy $2.7 billion port assets from parent, in $2.9 billion ship building deal

COSCO Shipping to buy $2.7 billion port assets from parent, in $2.9 billion ship building deal

COSCO Shipping Holdings Co Ltd said on Monday it has agreed to buy port assets from its parent for an aggregate 19.7 billion yuan ($2.7 billion) as it aims to build a global digital supply chain for its customers.

The Chinese shipping group said it would buy 14.9% of Shanghai International Port (Group) from its indirect controlling parent China COSCO Shipping Corp Ltd for 18.9 billion yuan, and a 3.2% stake in Guangzhou Port for 778.7 million yuan.

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COSCO Shipping Holdings also said it had entered into shipping contracts with China COSCO Shipping’s Dalian COSCO KHI Ship Engineering to build five vessels for a total of $1.2 billion.

Its unit Orient Overseas (International) Ltd has entered into ship building contracts with Nantong COSCO KHI Ship Engineering to build seven vessels for a total $1.7 billion.

Last week, the German cabinet allowed COSCO to buy a stake in a terminal in the country’s largest port in Hamburg, but the approved investment is less than the initially planned 35% stake that the Chinese shipping giant and HHLA had aimed for.
Source: Reuters

Louis Gyan Kofi
Author: Louis Gyan Kofi

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