JAPAN's Mitsui OSK Lines (MOL) has confirmed that it is negotiating with Toronto fund manager Brookfield Asset Management to sell 49 per cent of its US terminal assets, reports Lloyd's List.
Through MOL's TraPac subsidiary, which owns American terminals in Long Beach, Oakland and in Jacksonville, the sale will be made to Brookfield, which also owns PD Ports in the UK.
In an emailed statement to Lloyd's List, MOL said: "We are now under discussion with Brookfield Asset Management to establish a cooperation scheme, not only to add value to our container terminals in the United States, but also to consider further expanding co-operation coverage to their key strategic ports in various countries which complement our extensive liner network."
Brookfield has US$175 million under management and a 100-year history of owning property and operating, infrastructure and renewable power projects.
The Port of Los Angeles said it would be a "cash transaction purchasing existing shares with no new shares being issued and carrying out an incentive payment if certain volume criteria are met".
It goes on to say that although MOL would retain the 51 per cent, the deal involves a supermajority - more 50 per cent - before any major decision of budgets and strategy and senior executive compensation could be taken.
In 2009, Brookfield formed a new holding company, Brookfield Ports (UK) Ltd, to complete the purchase of PD Ports from Australia's Babcock & Brown Infrastructure (BBI), then owner of the Hull Container Terminal.
Source : HKSG.