The request of the Hellenic Republic Asset Development Fund for COSCO to submit an improved offer to buy the Piraeus Port Authority was expectable. The role of this Fund is to negotiate as much as possible and finally contribute to higher revenues for the Greek state as privatisations are being carried out. COSCO is well-aware of this process and will submit a new offer. However, this new offer will not be fundamentally higher taking the current stock market price of the Piraeus Port Authority into account.
Economic details of negotiations have not been published. This is also the case for the assessment of the Piraeus Port Authority’s price by the Kantor-Deloitte consortium and American Appraisal Hellas. As long as negotiations continue, both sides – the Hellenic Republic Asset Development Fund and COSCO – will push for better terms to serve their interests. But it seems that the final deal will be sealed soon. That is because such as deal will be based on a win-win logic. On the one hand, Greece highly appreciates COSCO’s port expertise and seeks to benefit by a deep partnership with China in its effort to overcome the crisis. And on the other one, COSCO considers the Piraeus port critical for the increase of its annual profits as well as for the implementation of China’s ‘One Belt – One Road’ strategy.
Within this context and after years of patience Greece and China are now close to an agreement which will boost their bilateral relationship.