It is reported that China Cosco Holdings Company Ltd will buy its parent's dry bulk shipping fleet for USD 4.6 billion making it the world's largest transporter of resources. The acquisition of the world's biggest bulk shipping business will make China Cosco a global shipping player rivaling AP Moller-Maersk in terms of fleet size though the Danish firm focuses on container shipping and energy resources.

China Cosco plans to fund the acquisition by selling more than USD 3 billion of new yuan denominated Chinese A shares at no less than CNY 18.49 apiece to its parent and nine institutional investors. The balance would be paid via bank loans and internal resources.

The highly profitable bulk fleet business, which is flourishing amid China's rapacious demand for iron ore, metals and other resources and resultant high global freight rates will boost China Cosco's earnings several fold.

Cosco's total container fleet operated 139 vessels with a total capacity of 399,237 TEUs as at the end of 2006.