PortandTerminal.com, March 22, 2019
Long Beach, CA – Turkey’s Yilport Holding is in advanced talks to buy Long Beach Container Terminal (LBCT), a deal that would value the facility at close to $2 billion, according to a report by Bloomberg yesterday.
Cosco is selling Long Beach facility to appease regulators
Container terminal ownership at the Port of Long Beach:
China’s influence at the Port of Long Beach has increased dramatically since its state-owned shipping line COSCO’s acquisition of rival shipping line OOCL. In addition to the LBCT, China’s state-owned COSCO shipping line is part owner of Pacific Container Terminal at the Port of Long Beach as well.
Cosco agreed to sell the Long Beach terminal to obtain U.S. regulators’ approval for its acquisition of OOCL, a rival container-shipping line, a deal completed last year. In such mandated transactions, the Committee on Foreign Investment in the United States, or CFIUS, must also approve the buyer.
The discussions between Yilport, owned by Robert Yuksel Yildirim, and terminal owner Cosco Shipping Holdings Co. aren’t yet exclusive, said the people, who asked not to be identified because the information is private. There were at least two other bidders who made the shortlist and no final decision has been made, they added.
A Yilport representative declined to comment. A representative for Cosco previously referred questions on the Long Beach terminal to Orient Overseas International Ltd., which wasn’t available for comment outside of regular business hours in Asia.
The Port of Long Beach is a U.S. gateway for trans-Pacific trade and the second-busiest container seaport in the U.S., handling more than 7.5 million containers each year or cargo valued at almost $200 billion, according to its website.
The facility also attracted bids from infrastructure investors including Australia’s Macquarie Group Ltd., people familiar with the matter said in December.
Yilport told Bloomberg in February 2018 that it was seeking to spend as much as $2.2 billion over the next three years on expanding existing port projects and on acquisitions in North America, Latin America and Europe. In 2017, the company attempted to acquire Ports America Holdings Inc., a U.S maritime-terminal operator, as part of a plan to be among the 10 largest container-terminal operators in the world by 2025.
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