It will help dominate the Hong Kong port.
Hutchison Port Holdings Trustt will pay US$413 million in cash to buy the entire stake in Asia Container Terminal Ltd. from DP World and a unit of PSA International Pte. DP World also sold some other assets in Hong Kong to raise a total of HK$742 million.
After the deal, Hutchison and its partner, Cosco Pacific Ltd., will control 64% of capacity in Hong Kong, up from 55%. Hong Kong is the world’s third-busiest container facility. Shanghai was the world’s busiest container port last year and Singapore the second busiest.
The acquisition will help Hutchison dominate the Hong Kong port and will generate funds for DP World to expand into other markets. The port business of billionaire Li Ka shing said it will look for expansion opportunities.
Analysts said the deal can help Hutchison eliminate a competitor in Hong Kong and increase its market share.
Hutchison Whampoa is the world’s second-largst container port operator. It owns 28% of Hutchison Port Holdings that handled 23 million 20-foot containers last year at its facilities in Hong Kong and Shenzhen, 5% beter than a year earlier.
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