Hong Kong: Sinotrans Shipping Ltd said late on Tuesday controlling shareholder China National Foreign Trade Transportation (Group) Corp, or Sinotrans Group, was considering a merger with China Changjiang National Shipping Corp. The merger target is China's largest river shipping line, Changjiang being the word Chinese use for the Yangtze.
Hong Kong-listed Sinotrans Shipping said Sinotrans Group, the nation's logistics giant holding 67.51 percent of Sinotrans Shipping, was in talks with China Changjiang on key aspects of the possible merger and related reorganisation but it gave no further details.
Sinotrans Group also holds a 57.93 percent stake in Sinotrans Ltd, while China Changjiang's listed units include Nanjing Tanker and Changjiang Phoenix.
In May, Shanghai Securities News had reported that Sinotrans Groupp and China Changjiang planned to merge into China's second-largest shipping logistics firm.
In related news Sinotrans Container Lines will merge with Lufeng Shipping, another boxship operator in the Sinotrans group, on July 1. While belonging to the same group, the two firms have been offering independent container services on the Japan-China route. Their integration has been a pending issue for years. [18/6/08]
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