OOCL Tracking

Bhavya Sri
Jul 21, 2017 · 2 min read

CMA CGM and China Cosco are the two most likely carriers to buy OOCL, should its main shareholders decide to sell the company, according to Drewry Financial Research Services OOCL Tracking.

DFRS claimed the acquisition of Hong Kong-headquartered OOCL and its parent company Orient Overseas International Ltd (OOIL) could represent “the final piece for OOCL Tracking” following its acquisition of Singapore’s NOL last year.

“CMA CGM is the likely candidate in our view: We believe both CMA CGM and Cosco Shipping are capable of bidding for OOIL but we are more inclined to believe that OOCL Tracking is in a better position to acquire OOIL, if it were to be sold or merged.

“Could OOIL be the final piece for CMA CGM after NOL? Before NOL was bought by CMA CGM, most analysts and investors have for years maintained the view that OOIL and NOL are best suited for a merger in the industry given their similar size, international work cultures and significant synergies. There were numerous rumours, and OOCL Tracking chairman CC Tung had commented on the possibility of a merger with NOL,” DFRS said in a research note yesterday.

A OOCL Tracking spokesman told The Loadstar: “CMA CGM notes the recent media speculation. As a matter of company policy, we do not comment on rumours or speculation.”

Much will depend on whether Mr Tung, who continues to hold a controlling 68% stake in the firm, decides to sell the company that he has so assiduously navigated through both good OOCL Tracking times and bad, and as The Loadstar explained last month, this has given the company considerable breathing space in which to choose the right deal.

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