A PYMNTS Company

China: Cosco and China Shipping merger plan receives Beijing approval

By  |  December 10, 2015
China: Cosco and China Shipping merger plan receives Beijing approval

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.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    Subscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

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

    We’d love to be your preferred source for news.

    Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

    Add as Preferred Source

    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

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.