China’s two largest shipbuilders are planning to merge, according to information shared by their listed arms, reports Reuters.
Approval from authorities
The merging of China Shipbuilding Industry Corp (CSIC) and China State Shipbuilding Corp Ltd (CSSC), is subject to approval from related authorities.
There are still many details to be ironed out before the proposal can be finalised, the filings showed.
Both companies are centrally administered state-owned enterprises (SOE).
Plan of consolidation confirmed
A slew of units belonging to the two companies, such as CSSC Offshore & Marine Engineering Group Co Ltd, China Marine Information Electronics Co Ltd and Hubei Jiuzhiyang Infrared System Co Ltd issued similar statements confirming their parent companies’ plan of consolidation.
The two companies have multiple shipyards across China whose products range from aircraft carriers to commercial ships which carry oil and gas.
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Source: Reuters
