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CMES and Sinotrans & CSC to merge

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.