Marketplace rumours are circulating that one of the world’s largest containerlines could be eyeing a potential takeover bid for Hong Kong-based Orient Overseas Container Line (OOCL).
Currently ranked eighth in the world in regards to capacity at 571,183 TEU according to Alphaliner, the carrier’s shares have been observed to undergo a significant recent surge on the Hong Kong stock market amidst the speculation.
It has been noted that the gap is “widening” between the largest carriers — AP Moller-Maersk at 3.28 million TEU, Mediterranean Shipping Company at 2.84 million TEU, CMA CGM at 2.13 million TEU and COSCo at 1.64 million TEU — and the rest of the marketplace.
Furthermore, Transport Intelligence observes carriers such as OOCL — which is actually slightly smaller than the about-to-be acquired Hamburg Süd — are becoming increasingly “vulnerable” as the larger carriers continue to grow through acquisition.
“Such consolidation cannot be anything other than a challenge for the likes of OOCL,” it states.
“Although it has a better record of profitability than many others, for the first half of 2016 the company experienced a loss, mitigated by the revaluation of assets.
“Creating a new company that will be successful in today’s market is not easy. Yet should the Tung family, that holds a controlling stake in OOCL, wish to initiate some sort of process either of merger, purchase or sale, there probably would be no shortage of targets in the vicinity of the South China Sea.”