COSCO, China Merchants get nod to buy Taiwan terminal stake
Taiwan's Investment Commission approved China's investment of $135 million to take a 30 percent stake in a container terminal operated by Yang Ming Marine Transport Corp, the first port investment across the Taiwan Strait.
Under the deal, China's biggest-ever investment in Taiwan, COSCO Pacific Ltd, China Merchants Holdings (International) Co Ltd and China Shipping Terminal will form a company to buy the stake from Yang Ming.
An application by the company, Cheer Dragon Investment Ltd, to buy Yang Ming's Kaohsiung Intercontinental Container Terminal stake had been approved, the commission said on Wednesday.
Business ties between Taiwan and China have reached their best level in 60 years after the island's government began a policy of economic rapprochement with its political rival.
The Kaohsiung terminal can accommodate the world's biggest container ships and has total designed capacity of 2.8 million twenty foot equivalent units (TEU) when construction of all its four berths are fully completed in 2014.
Yang Ming, Taiwan's second-largest shipping line, earlier this year sold a 10 percent stake in the terminal to Ports America International Holdings Cooperation, an affiliate of Ports America Group, for $45 million. (Reuters)