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CMES, Sinotrans & CSC say merger talk is not confirmed

CMES, Sinotrans & CSC say merger talk is not confirmed
China Merchants Energy Shipping (CMES) and Sinotrans & CSC Group have jointly announced on Tuesday that earlier reports of their merger remain unconfirmed.

Shanghai-listed CMES and Sinotrans Air Transportation Development Co, subsidiary of Sinotrans & CSC, issued statements to the stock exchange to clarify on the merger news circulated in the media since last week.

The similarly worded statements pointed out that up until today, the companies have yet to receive any notices regarding their merger, and there are no important announcements that need to be made public as yet.

The statements stopped short of denying outright that the merger news is incorrect or that a merger will not happen.

Earlier reports from the local media said that Beijing has ordered the merger of the two shipping groups.

Back in September 2014, CMES and Sinotrans & CSC have formed a joint venture named China VLCC to own and operate VLCCs.

CMES on its own also set up a wholly-owned subsidiary China VLOC in Hong Kong last week to own four valemaxes purchased from Brazil’s Vale.

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.”