COSCO and Lowers Shipping slowly anticipates their complex of fusion



The Chinese shipowning groups Lower Ocean Shipping (Group) Co. (COSCO) and Lowers Shipping (Group) Co. (CS) have introduced today in the detail their plan of fusion, that government of Beijing has obtained the green light de ( on 10 December 2015). The project previews that COSCO mainly Container Lines (COSCON), the society that work the marine services of line of the group COSCO, charterings the assets of China Shipping Container Lines (CSCL), society of Lowers Shipping that is active in the same field of COSCON, included the ships, the container, and that it yields the activities of marine bulk transport, while COSCO Pacific, societies to which are under responsibility the managed harbour terminals from group COSCO, acquires the assets in the harbour field of the group Lowers Shipping and of the CSCL. This moreover last one will acquire activity of chartering operated by COSCO and from Shipping Lowers.

More in detail the plan previews that Shipping Lowers Lines Container and its branch CSCL Hong Kong sells the capital stock of 34 societies from they stopped assignees characterized from Lowers COSCO, investment trust of group COSCO, and from CS East Asia, branch of the group Lowers Shipping, and that CSCL sells its participation of 49% in Lowers Shipping Ports Development Co. (CS Ports) to the COSCO Pacific.

Moreover the plan previews that CSCL acquires the entire capital of the investment trust Lowers Shipping Investment Co. (CS Investment) currently possessed from Maritime group CS (89.79%), from Guangzhou (7.95%) and Shanghai Shipping (2.26%), than acquires the entire capital of Lowers Shipping Leasing Co. (CS Leasing) prisoner from group CS, 40% of the capital of Lowers Shipping Finance Co. (CS Finance) possessed from Maritime CS (20%) and Guangzhou (20%), than acquires 13.67% of the capital of Lowers BOHAI Bank (CBHB) from Lowers Ocean Shipping (Group) Co. and it signs 17.53% of the capital stock of COSCO Finance Co. through a capital increase.

Moreover the fusion project previews that CSCL, through the society integrally controlled CSCL Hong Kong, acquires from Lowers Shipping (Hong Kong) Holdings Co. (CS Hong Kong) the entire capital of Dong Fang International Investments Ltd. , the entire capital of Lowers Shipping Nauticgreen Holdings Co. (CS Nauticgreen) and the entire capital of Helen Insurance Brokers Ltd. , and that it acquires from COSCO Hong Kong 100% of the capital of Long Honour Investments Ltd. and from COSCO Pacific the 100% of the capital of the chartering society Florens container Container Holdings Ltd.

The two Chinese groups have emphasized that this consolidation will allow to create the fourth company of world-wide navigation in the field of the containerized transport with a fleet of 288 portacontainer, of which 84 of the ability to beyond 8.000 teu, and total cargo abilities pairs to about 1,6 million teu.