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China: Mega shipping merger faces some concerns

By  |  August 11, 2015

The potential mega merger between two state-run shipping conglomerates, China Shipping Group and Cosco Group, which could be the largest ever merger in China’s shipping industry, has drawn varied opinions on its impact.

Industry observers reckon the merger would be much more complex than the tricky merger between the other two state-run shipping groups, Sinotrans and Changjiang Shipping Group.

The combined assets of China Shipping Group and Cosco Group is about RMB530bn ($83.8bn) and half of the assets are based outside the mainland. The two groups also control eight listed companies in total.

Their is a possibility is that the two groups merge as one super group, which will have a larger scale of assets to compete in the market.

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