AFP, Shanghai :
China will combine two of its state-owned shipping giants, the companies said, the sector’s second multi-billion-dollar merger in a month as the government pushes consolidation of its nationalised enterprises.
Sinotrans & CSC Holdings Co., the nation’s third largest shipping company, will become a wholly-owned subsidiary of China Merchants Group (CMG), a conglomerate with interests in transport, finance and property, according to company statements.
Both are among the more than 100 state-owned companies which report directly to the central government, though Sinotrans will no longer do so after the restructuring, said the State-owned Assets Supervision and Administration Commission, which oversees them.
Earlier in December, China approved the merger of another two of its biggest state-owned shipping companies, China Ocean Shipping Group (Cosco) and China Shipping Group.
The moves follow China’s release in September of broad reform guidelines for state-owned companies aimed at making them more competitive internationally.
The latest merger will help the companies to build “the world’s best company to compete globally”, CMG said in its statement late Tuesday.
China will combine two of its state-owned shipping giants, the companies said, the sector’s second multi-billion-dollar merger in a month as the government pushes consolidation of its nationalised enterprises.
Sinotrans & CSC Holdings Co., the nation’s third largest shipping company, will become a wholly-owned subsidiary of China Merchants Group (CMG), a conglomerate with interests in transport, finance and property, according to company statements.
Both are among the more than 100 state-owned companies which report directly to the central government, though Sinotrans will no longer do so after the restructuring, said the State-owned Assets Supervision and Administration Commission, which oversees them.
Earlier in December, China approved the merger of another two of its biggest state-owned shipping companies, China Ocean Shipping Group (Cosco) and China Shipping Group.
The moves follow China’s release in September of broad reform guidelines for state-owned companies aimed at making them more competitive internationally.
The latest merger will help the companies to build “the world’s best company to compete globally”, CMG said in its statement late Tuesday.
