South Korean ocean carrier Hanjin Shipping Co. signed a deal to sell its stake in the U.S. port operator that runs Long Beach, Calif.’s, biggest container terminal to Mediterranean Shipping Co. (MSC), reports WSJ.
Hanjin, which for bankruptcy protection in August, had signed a contract to sell its 54% stake in Total Terminals International LLC to Geneva-based MSC, the world’s second largest container operator by capacity. The exact value of the deal wasn’t known.
The Seoul Central District Court handling Hanjin’s insolvency proceedings approved the deal on the condition it also is endorsed by a U.S. Bankruptcy Court and the U.S. port authority.
Hanjin owned a 54% stake in Total Terminals International, while MSC had controlled the remaining 46%. Total Terminals International operates one terminal in Long Beach, California, and another in Seattle.
MSC had formed a consortium with Hyundai Merchant Marine Co. earlier this month in the race for the 385-acre facility that handles three million containers.
But Hyundai Merchant said last week it was pulling out of the joint bid and instead decided to take a minority stake in Total Terminals from MSC if the European shipping line won the deal.
The Port of Long Beach has been suffering declines in overall container traffic since the Hanjin bankruptcy due to the volume of business the shipping line steered toward Total Terminals International.