HONG KONG — The long-expected merger of Cosco and China Shipping has received the green light from the State Council, China’s media is reporting: The merger of the mainland’s two state-owned giants will be announced on Dec. 11. The new entity will be known as China Cosco Shipping Group with its headquarters in Shanghai.
With the container shipping industry struggling against excess capacity and weak demand, only cheap oil is keeping the lines profitable, and after years of industry losses the long-awaited consolidation has begun in a big way. France line CMA CGM started the ball rolling earlier this week with a $2.4 billion offer for Singapore’s NOL. The new China Cosco Shipping Group would propel the carriers into fourth place behind CMA CGM-NOL with an 8 percent global market share.
Source: Greg Knowler, Senior Asia Editor | Dec 10, 2015
With the container shipping industry struggling against excess capacity and weak demand, only cheap oil is keeping the lines profitable, and after years of industry losses the long-awaited consolidation has begun in a big way. France line CMA CGM started the ball rolling earlier this week with a $2.4 billion offer for Singapore’s NOL. The new China Cosco Shipping Group would propel the carriers into fourth place behind CMA CGM-NOL with an 8 percent global market share.
Source: Greg Knowler, Senior Asia Editor | Dec 10, 2015
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