rss icon Subscribe
desktop mobile

Cosco Eyes PIL Takeover

Image: Cosco Shipping Holdings Co.

Laxman Pai

After buying several container factories from its smaller competitor Singapore-based shipping company Pacific International Lines (PIL), China's Cosco Shipping Holdings Co. is eyeing it as a potential takeover target.

The Chinese state-run ocean carrier had bought part of debt-ridden PIL's container-manufacturing business, and executives at the Chinese carrier believe they could wrap up a deal for the entire business if family-owned PIL's owners decide to sell, reported WSJ.

Cosco Shipping is looking to expand its footprint in developing markets and a take over would be an edge towards deeper logistics services beyond conventional ocean shipping, with a distinctive Asian focus.

According to Paris container research house Alphaliner, if such a deal went through, it would place Cosco very close to the Mediterranean Shipping Co's (MSC) 3.73 million TEU capacity and ranking as the world's No 2 carrier.

"Cosco remains the front-runner in any potential takeover of PIL, due to close historical ties and the complementary route network," said Alphaliner.

"Although PIL has repeatedly denied it is for sale, it remains an attractive takeover target with an established market presence in the Africa, Latin America, Middle East, South Pacific and intra-Asia trades," it added.

However, the two operators aren't in formal acquisition talks.

PIL is run by the Teo family and company Chairman Teo Siong Seng is a board member of Cosco's Hong Kong-listed container-shipping flagship unit. PIL relies on the Chinese operator to charter ships.

The shipping line has been in financial distress for a couple of years. PIL faces $1.08 billion in payments on short-term debt this June and is carrying a total of $3.46 billion in debt, Alphaliner said.

May 15, 2019

 

People & Company News

Navis Names Simon Doughty as GM, VP APAC

Photo: Navis

Navis, the terminal operating systems (TOS) provider and part of Cargotec, has announced the

TRIG Acquires French Wind Farms

Pic: Watson Farley & Williams LLP

UK-based investment fund  The Renewables Infrastructure Group (TRIG) has acquired stakes in four

Interview: Fredrik Johansson, Tillberg Design of Sweden

Fredrik Johansson, MA, Partner, Executive Project Director, Tillberg Design of Sweden

Tillberg Design of Sweden has been a central player in the six-year quest to envision, design

Legal

TRIG Acquires French Wind Farms

UK-based investment fund  The Renewables Infrastructure Group (TRIG) has acquired stakes in four French onshore windfarms, with a total capacity of 107.8 MW.

Second Tanker in Gulf Turns Sharply Towards Iran

A second oil tanker, the British-operated, Liberian-flagged Mesdar, turned sharply north towards Iran's coast on Friday afternoon after passing westward through the Strait of

Iran: British-flagged Tanker Seized in Gulf

File Image of the Stena Impero (CREDIT: MarineTraffic.com / © Erwin Willemse

Iran's Revolutionary Guards said on Friday they had captured a British-flagged oil tanker in the

Maritime Apps