China’s two major shipbuilders have revealed plans to merge their respective businesses, according to stock exchange filing released by their subsidiaries.
Namely, China Shipbuilding Industry Corp (CSIC) and China State Shipbuilding Corp Ltd (CSSC) said that their plans are subject to approvals from relevant authorities.
The transaction is still at a planning stage, the parties said, adding that there is plenty of uncertainty surrounding the consolidation.
The potential merger, revealed on July 1, would be the latest in a row of mergers of state-owned businesses on the back of China’s revamp of the shipbuilding sector.
China Shipbuilding Industry and China State Shipbuilding operate multiple shipyards across China that specialize in construction of various vessel types, from naval ships to commercial vessels.
Initial reports of the merger surfaced in the first quarter of 2018, however, at the time, the parties said that the were not planning a combination.
On March 30, 2018, Bloomberg cited undisclosed sources as saying that China’s state council gave its preliminary approval to merge CSSC and CSIC.
World Maritime News Staff