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China: Cosco and China Shipping merger plan receives Beijing approval

By  |  December 10, 2015

The long-awaited merger plan between Cosco and China Shipping, China’s two largest shipping conglomerates, has finally received the go-ahead from China’s State Council. A preliminary scheme will likely be disclosed by the listed units of the pair on Friday.

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    The new entity, named China Cosco Shipping Group, will be based in Shanghai, local media Caixin reported, quoting a source close to Cosco.

    Lloyd’s List earlier reported the two giants are likely to receive Beijing’s approval for their draft merger plan at the end of this year, according to a person familiar with the matter.

    The person also said the two state-owned conglomerates might start merging their different segments, including bulker, tanker, boxship and ports all at the same time.

    The fusion of the pair en bloc would create a behemoth with total assets around Yuan542bn ($84.2bn) and revenue of Yuan245bn, according to the companies’ 2013 data.

    In container shipping, the new group CCSG will become the world’s fourth largest operator, with a market share of 7.8%, according to statistics from Industrial Securities.

    Full content: The Wall Street Journal

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