13:06, July 10 264 0

2017-07-10 13:06:06
Paul Hastings and Slaughters advise on Chinese shipping giant’s $6.3bn acquisition

Paul Hastings has advised Chinese shipping giant COSCO Shipping’s $6.3bn acquisition of Hong Kong rival Orient Overseas International (OOIL), which turned to Slaughter and May for advice.

COSCO Shipping Holdings, a state-owned shipping group, is currently the world’s fourth container shipping company. The deal, which marks the latest consolidation in the global maritime industry and one of the largest M&A deals so far this year, will make it the third largest player in the industry.

COSCO, listed in both Shanghai and Hong Kong, was advised by Paul Hastings, with the firm’s Greater China chair Raymond Li leading the team.

OOIL is currently the world’s seventh largest shipping liner, founded by the family of Hong Kong’s first Chief Executive Tung Chee-hwa. The Hong Kong-listed company sought out Slaughter and May to provide legal advice on the deal. Slaughter and May’s team is led by Hong Kong partners Peter Brien and Benita Yu.

JP Morgan is the financial adviser to OOIL, while UBS is advising the joint offerors – China COSCO and Shanghai Port Group Development. It is understood that Kirkland & Ellis acted for UBS in the transaction.

COSCO will finance its part of the deal through external debt financing and the transaction is subject to various regulatory reviews and approvals.