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China: Beijing set to approve shipbuilding mega-merger

By  |  April 2, 2018

China’s cabinet has given preliminary approval to merge the country’s two largest shipbuilders, China State Shipbuilding Corp (CSSC) with China Shipbuilding Industry Corp (CSIC), Bloomberg reported on Friday, March 30, citing people familiar with the matter.

The giant resulting from the merger will have more than twice the combined annual revenue of South Korea’s Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy Industries Co., the world’s three biggest shipbuilders by market value. Shares of the three companies declined in Seoul.

CSSC and CSIC were formed in July 1999 under a plan to increase competition and efficiency among China’s defense companies. A merger of the two groups could still be subject to changes as many details need to be ironed out by ministries and regulators, the people who spoke to Bloomberg said.

Full Content: Bloomberg

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