Sinotrans Shipping Limited, subsidiary of Sinotrans & CSC, has in turn become a listed subsidiary of China Merchants, Sinotrans Shipping announced to the Hong Kong Stock Exchange.
In December 2015, Beijing approved the strategic merger of the two corporations. And further back in September 2014, Sinotrans & CSC and China Merchants had established a joint venture for their VLCC business.
China Merchants owns shipping arm China Merchants Energy Shipping (CMES) while Sinotrans & CSC is itself the result of a 2009 merger between China National Foreign Trade Transportation (Group) Corp (Sinotrans) and Changjiang Shipping Co (CSC).
The enlarged China Merchants after absorbing Sinotrans & CSC is expected to enhance the competitiveness of China’s state-owned enterprises and promote industry consolidation.
With the tanker shipping business of the two groups already merged, China Merchants and Sinotrans & CSC are working on consolidating their other businesses including dry bulk shipping, ports and logistics.