The initial investment will be followed by a second phase transaction where the Chinese shipping firm will use its existing 37% stake in ELF Lubricants (Guangzhou), a subsidiary of Total China, to further invest into Total Lubricants (China).
“The completion of the entire transaction will see Guangzhou Ocean Shipping own 20% stake in Total Lubricants (China),” Cosco Shipping announced in a statement to the Shanghai Stock Exchange.
Total China is planning a corporate restructuring in China by integrating its lubricant businesses, and Cosco Shipping believes that its investments will bring about long term margin visibility for the group.
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