COSCO Shipping Ports has entered into a merger agreement with Tianjin Port Holdings and China Merchants International Terminals (CM Terminals) regarding the trio’s respective subsidiaries.
Under the agreement signed on June 30, Tianjin Port Container Terminal (TCT), which is wholly owned by Tianjin Port Holdings, will merge with Tianjin Five Continents International Container Terminal (FICT) and Tianjin Orient Container Terminals (TOCT). As informed, TCT will succeed all assets, business, credits, debts and employees of FICT and TOCT. The two units will be deregistered as legal entities and their shareholders will hold equity interest in TCT.
Following the merger, TCT, as the surviving entity, will be 76.68% owned by Tianjin Port Holdings. An additional 10.01% stake will be owned by COSCO Ports (Tianjin) Limited and 6% by China Shipping Terminal Development (CSTD), both of them being subsidiaries of COSCO Shipping Ports. The remaining 7.31% stake in TCT will be owned by CM Terminals. The completion of the merger is subject to relevant conditions.
With the merger, the parties aim to optimize the allocation of resources, enhance the unified management of the terminals, lower operational costs and increase the overall competitiveness of TCT and its efficiency, COSCO Shipping Ports said.