Photo/Shetuwang

July 10 (NBD) -- COSCO SHIPPING Holdings Co Ltd ("COSCO", 601919.SH) announced Sunday its planned deal to buy shipping firm Orient Overseas (International) Ltd. ("OOIL", 00316.HK) has gained the nod of the Committee on Foreign Investment in the United States. 

It is noteworthy that COSCO has agreed to carve out the California-based Long Beach Container Terminal ("LBCT") actually controlled and operated by Orient Overseas (International) Ltd. to a third party so as to ease national security concerns of the U.S. However, the buyer and selling price of the container terminal remains unknown at present.  

Before the takeover by a third party, the ownership of the container terminal business will be transferred into an irrevocable U.S. trust, according to an announcement made by COSCO SHIPPING Holdings. 

A previous report by Lloyd's List said that U.S. terminal operators Ports America and SSA Marine are likely to buy the Long Beach terminal, but some other analysts hold that the buyer should be container shipping giants like CMA CGM Shipping Co., Ltd.

The Long Beach Container Terminal is not only one of the quality terminals owned by OOIL, but also the most advanced automated terminal. It is claimed to be valued as high as 4.6 billion U.S. dollars.

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