China Merchants Group’s acquisition of Sinotrans & CSC Holdings Co has received official clearance from the Chinese government, the state asset regulator said on Tuesday.
Hong Kong-listed Sinotrans informed that it has been notified by the state-owned Assets Supervision and Administration Commission of the State Council (SASAC) of the Council’s approval of the “reorganisation between Sinotrans & CSC and China Merchants Group Limited .”
Under the plan, Sinotrans & CSC will become a wholly-owned subsidiary of China Merchants.
“The reorganisation aims to achieve economies of scale and synergies in particular in the areas of logistics, energy and bulk shipping, property development, ports and marine and offshore engineering between the two groups to speed up the development of an internationally competitive leading enterprise,” Sinotrans said.
Rumors on the possible business integration emerged in September and was reportedly ordered by the government on September 2nd.
The announcement on the business integration of yet another Chinese shipping duo comes on the back of a merger between two other Chinese shipping majors, China Ocean Shipping Group (Cosco) and China Shipping Group, within the government efforts to consolidate state owned enterprises and curb losses stemming from overcapacity in the mark
World Maritime News Staff