CMES and Sinotrans & CSC to merge

China Merchants Energy Shipping (CMES) and Sinotrans & CSC Group will merge, a latest development following longstanding cooperation between the two state-owned corporations.

The local media reported that Beijing has ordered the merger of the two shipping groups, which have already formed a joint venture named China VLCC back in September 2014 to operate VLCCs.

The next potential merger to watch is China’s two largest shipping conglomerates, China Cosco Group and China Shipping Group (CSG), where shares trading of their listed subsidiaries have been suspended since 10 August pending “a major announcement.”

CMES is the shipping arm of China Merchants Group, while Sinotrans & CSC is itself a result of a 2009 merger between China National Foreign Trade Transportation (Group) Corp (Sinotrans) and Changjiang Shipping Co (CSC).

China-based analysts were reported saying that while the VLCC business of CMES and Sinotrans & CSC has been consolidated via China VLCC, there remains further steps to put together other businesses of dry bulk shipping and ports and logistics.

Posted 03 September 2015

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Lee Hong Liang

Asia Correspondent

Lee Hong Liang has joined Seatrade as its Asia Correspondent. Based in Singapore, he will provide a significant boost to daily coverage of the Asian shipping markets, as well as bring with him an indepth, specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and the ability to write hard news and feature stories.

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