A report has linked CoscoCS to a bid of more than $4bn for smaller rival Orient Overseas Container Line (OOCL).
The Chinese giant has been in talks “for months” and is in the process of preparing an offer, according to the Wall Street Journal.
Citing people familiar with the matter, the newspaper said CoscoCS is leading the race for OOCL and has more chance of pulling off a deal compared to other reportedly interested parties such as CMA CGM and Evergreen Marine.
According to Clarksons, OOCL controls a fleet of more than 60 vessels, with only few of them built before 2000.
VesselsValue.com estimates OOCL’s fleet value at around $1.5bn.
If the acquisition materialises, it would mark another step towards industry consolidation after Cosco and China Shipping Group merged their assets last year.
Japan's MOL, NYK and K Line are also combining their boxship operations, while CMA CGM bought NOL and Maersk Line took over Hamburg Sud.
Germany's Hapag-Lloyd has merged with both CSAV and UASC.
CoscoCS and OOCL are both members of the Ocean Alliance group, which is set to begin operations in April.
