Shanghai: China's largest logistics company Sinotrans Group has reached a merger agreement with China Changjiang National Shipping (Group) Corp (CSC Group), the leading river shipping company, according to statements by CSC's listed units on Thursday.
The merger still needs to get approvals from relevant government departments of China, CSC's listed subsidiaries, Changjiang Shipping Group Phoenix Co and Nanjing Tanker Corp, said in separate statements filed with Shanghai and Shenzhen stock exchanges. The merger of the two state-owned groups is a move to consolidate fragmented state-owned groups into fewer, more efficient and focused entities which can deploy their resources for developing identified business areas. If the deal proceeds, Sinotrans Group will become the country's second largest shipping and logistics conglomerate, just trailing COSCO Group.
Sinotrans posted operating revenue of RMB 57.7 billion in 2007, and aims to boost the figure to somewhere between RMB 80 billion and RMB 100 billion by 2010. Changjiang National Shipping focuses on river shipping. It has total assets of RMB 41.2 billion and a staff of 70,000, as of end 2007. [10/7/08]
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