Bidders Line Up for Long Beach Terminal
The COSCO-owned Long Beach Container Terminal (LBCT) has attracted interest from a number of potential buyers, including some of the world’s leading investment firms, according to Bloomberg.
The strongest interest has, according to Bloomberg, so far come from two of the biggest investment firms in the world - Blackstone Group and KKR & Co.
Other potential buyers include EQT, a firm that specializes in investing in developing economies, and asset management company Macquarie.
In 2018, EQT acquired 90% of Global Gateway South, a terminal in the adjoining Port of Los Angeles, from French container line CMA CGM.
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The LBCT is up for sale as part of an agreement between COSCO and the US Department of Homeland Security following the Chinese firm’s US$3.6 billion acquisition of Hong Kong carrier OOCL in July 2018, the previous owners of terminal.
The sale of LBCT will reportedly be completed by June 2019 and could be worth approximately $1 billion.
According to Bloomberg’s sources, deliberations are at an early stage and there is no guarantee yet that an agreement will be reached.
Bloomberg says COSCO referred their queries to OOCL who are yet to respond.