Its Official: HMM to Compete wtih MSC for Long Beach Terminal
As Hyundai Merchant Marine (HMM) and Swiss shipping giant Mediterranean Shipping Company S.A. (MSC) are expected to enter the takeover battle for the Long Beach Terminal in California, they will aggressively negotiate its price, reports Business Korea.
There has been reports that Hanjin Shipping Co. is in talks with MSC to sell its stake in the Long Beach Terminal as part of a plan to dispose most of its overseas assets, after the cash-strapped Hanjin officially announced to sell its stake in the Terminal.
More global shipping firms, which operate routes to the U.S., are highly likely to participate in the takeover battle.
HMM, which seeks to jump into a nation’s mega shipping firm by acquiring the largest asset of Hanjin Shipping, and MSC, the second largest shareholder of the terminal and has the preemption preference right, are considered the most potential companies to take over the terminal.
Last week, Hyundai said it is considering submitting a preliminary bid for Hanjin assets used in its U.S.-Asia routes, but prospects for additional interest are unclear.
Hyundai Merchant Marine Co Ltd (011200.KS) said it is considering submitting a preliminary bid for Hanjin assets used in its U.S.-Asia routes, but prospects for additional interest are unclear.
Market industry watchers say that the bidding price of the Long Beach Terminal is currently estimated at 100 billion won (US$87.64 million).
When the bidding price is high, MSC can give up the preemption preference right. HMM plans to take over the terminal using the fund for new ship buildings worth 1.4 trillion won (US$1.23 billion) to be raised by the government.
