Paul Hastings has represented COSCO Shipping on its $6.3 billion offer for Orient Overseas International (OOIL), which turned to Slaughter and May for advice. Kirkland & Ellis is also involved in the deal, acting for UBS, COSCO’s financial adviser.
The acquisition, which is subject to anti-trust reviews by Chinese and U.S. government authorities, will make the Chinese group the world’s third-largest container shipping line. COSCO, which is currently the world’s fourth-largest, said in a statement that it will have a fleet of more than 400 vessels and capacity exceeding 2.9 million TEUs (twenty-foot equivalent units) should the deal go through. COSCO also said it would finance its part of the deal through external debt financing.
The proposed deal is the latest in a wave of mergers and acquisitions in the global container shipping industry. It comes as China's government is outspoken over its desire to raise its profile in global shipping, which dovetails with its Belt and Road initiative aimed at increasing its influence over supply chains from Asia to Europe, according to Reuters.
The Paul Hastings team was led by corporate partner and Greater China chair Raymond Li. The Kirkland team was headed by corporate partners Nicholas Norris and Derek Poon, as well as debt finance partner Daniel Lindsey.
