South Korean shipping company Korea Line has been chosen as the preferred bidder over Hyundai Merchant Marine (HMM) to buy Hanjin Shipping’s Asia-US operations.
Korea Line is believed to have proposed better conditions, including a higher bid than HMM.
The company’s bid included the purchase of Hanjin’s 54% stake in Total Terminals International (TTI), which operates Pier T at the Port of Long Beach, California.
Signing of the final documents for the deal, the value of which was not disclosed, is set to take place on November 21.
Korea Line and HMM were reportedly the only companies which submitted final bids on November 7.
Despite three other companies submitted initial letters of intent in October, they failed to make final bids following due diligence conducted on Hanjin’s operations in the US from October 31 to November 4.
According to Alphaliner, Hanjin’s transpacific network is “unattractive” to those shipping lines which are already active in the trade.