Cosco and COFCO Fortune plan to explore operations linked to warehouses, terminal ports and container yards. Credit: Erich Westendarp / Pixabay

Chinese state-run shipping company Cosco Shipping Holdings has agreed to acquire a 5.8% interest in COFCO Fortune for CNY5.5bn ($814m), reported Reuters. 

The purchase of this stake in the logistics and food processing arm of COFCO, a state agricultural conglomerate, forms part of the business’ strategy to boost capital.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Upon completion of the deal, the interest of COFCO and its other units in COFCO Fortune will be diluted from 89.7% to 69.8%, according to a Cosco stock exchange filing.

Cosco and COFCO Fortune plan to explore operations linked to warehouses, terminal ports and container yards. 

The filing stated that Houke Fulin, a fund tied to private equity company Hopu Investments, also took part in the capital raising.

See Also:

Multiple state-affiliated entities, such as the management council of China’s basic pension insurance fund and China Life Insurance’s asset management unit, also subscribed to the capital increase plan.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Last October, Cosco announced the acquisition of port assets from its parent entity for $2.7bn.  

This included the purchased of a 3.2% stake in Guangzhou Port as well as a 14.9% holding in Shanghai International Port Group.

In the same month, Cosco Shipping Port secured the German Government’s approval to acquire a minority stake of below 25% in HHLA Container Terminal Tollerort (CTT) at the Port of Hamburg, which was less than the 35% stake initially agreed upon in September 2021.

Cosco will not gain exclusive rights to the terminal, which will have the city of Hamburg as its main shareholder.