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Thu 5 Mar 2009, 17:28 GMT

COSCO Int'l acquires stake in bunker firm


Company says deal is in line with strategy to expand its shipping services business.

COSCO International Holdings Limited has announced that it has acquired an 18 stake in Double Rich Limited, a company specialising in the trading of bunker oil and bunker supply in China.

COSCO International has agreed to pay HK$38,044,000 (US$ 4.9 million) for its share in Double Rich, which the company says is in line with its corporate strategy of expanding its shipping services business.

"It further increases the company's capability to become a global leading shipping services provider," COSCO International said in a statement.

Commenting on the deal, Liang Yanfeng, Managing Director of COSCO International, said, "After the completion of the acquisition, COSCO International will participate in the business of bunker oil trading and bunker oil supply, as well as various oil products storage services.

The acquisition will not only expand the scope of our core businesses, but also facilitate generating synergies between our existing shipping services operation arms and the customers as well as trading network of Double Rich, which will further expand the profitability base of the Company and create greater returns for our shareholders."

Double Rich, which will now be 82 percent-owned by China Marine Bunker (PetroChina) Co., Ltd. (Chimbusco), is principally engaged in the trading of bunker fuel and oil products, and in the provision of bunker supply services.

The company says it has established business partnerships with oil companies including ExxonMobil Hong Kong Ltd., Caltex Hong Kong Ltd., China Resources Petroleum co. Ltd. and Shell Hong Kong Ltd. and has an extensive client network of shipping companies around the world. Its estimated annual trading volume is around two million tonnes.

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