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Cosco ShippingHoldings to acquire Orient Overseas in USD6.3bn deal

Wholly-owned subsidiaries of Cosco Shipping Holdings and Shanghai International Port (Group) Co have made a voluntary cash offer to acquire Orient Overseas (International) Limited (Orient Overseas) in a deal worth up to USD6.3 billion.

Cosco ShippingHoldings, which was represented by law firm Paul Hastings in the acquisition, is the world’s fourth largest container shipping company and Orient Overseas is the world’s seventh largest container shipping company. 
 
The proposed acquisition marks the latest consolidation in the global maritime industry and one of the largest M&A deals globally so far this year. The combined entity will become the world’s third largest container liner. The acquisition will strengthen Cosco ShippingHoldings’ position in the global container shipping industry by creating synergies through optimisation of shipping network and capacity, optimisation of cost structure and integration of container fleet.
 
The shares of Cosco ShippingHoldings are listed on the Hong Kong Stock Exchange and the Shanghai Stock Exchange, and the shares of Orient Overseas are listed on the Hong Kong Stock Exchange. The acquisition will be conducted by way of a pre-conditional voluntary general cash offer to acquire all of the issued shares of Orient Overseas pursuant to the Hong Kong Takeovers Code. Cosco ShippingHoldings will finance its consideration for the Transaction through external debt financing, and the Transaction is subject to certain pre-conditions, including various regulatory reviews and approvals and shareholder approval of Cosco Shipping Holdings.
 
The acquisition marks another important milestone for the growth of Paul Hastings’ practice in complex cross-border and outbound M&A transactions. Paul Hastings has demonstrated significant strength over the years in acting as international deal counsel for buyers in significant and complex M&A transactions, including acting for WH Group (formerly known as Shuanghui International) on its acquisition of Smithfield Foods in 2013 and acting for Cosco (Hong Kong) Group Limited on its acquisition of Piraeus Port Authority SA in 2016.

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