Orient Overseas International Limited (OOIL) and Macquarie Infrastructure Partners (MIP) announced that OOIL's wholly-owned subsidiaries, OOCL LLC and Long Beach Container Terminal, Inc., have entered into a Sale and Purchase Agreement to sell 100% of LBCT LLC to a consortium led by MIP, for US$1.78 billion. LBCT LLC operates the Long Beach Container Terminal (LBCT) in the Port of Long Beach, California, United States.

The sale is undertaken pursuant to the National Security Agreement entered into by OOIL, Faulkner Global Holdings Limited, a subsidiary of COSCO SHIPPING Holdings Co., Ltd, and the U.S. Department of Homeland Security and the U.S. Department of Justice on July 6, 2018, under which OOIL committed to divest its ownership of the Long Beach Container Terminal business.

As part of the sale, Orient Overseas Container Line Limited (OOCL), a subsidiary of OOIL, will also enter into a Container Stevedoring and Terminal Services Agreement with LBCT LLC for a 20-year period, confirming its significant long-term commitment to LBCT.

The terminal sale is subject to approval by the U.S. Department of Homeland Security and the Department of Justice.

J.P. Morgan is the financial adviser and Slaughter and May is the legal counsel to OOIL.

The Long Beach Container Terminal is part of the port’s US$1.4 billion Middle Harbor project that will be the largest automated terminal on the West Coast of the USA. Construction of LBCT in the Port of Long Beach’s Middle Harbor began in 2011.