The merger is still subject to approval according to statements published in the China Securities Journal.
The government supports consolidation of this large but fragmented sector. If it goes ahead, the move would create a sprawling transport corporation operating everything from marine, oil and river shipping to express delivery, freight forwarding and warehousing.
At the same time Sinotrans has reached a merger agreement with China Changjiang National Shipping, the country’s largest river shipping company, and Nanjing Water Transport.
It was stated: ‘There is no certainty as to whether or not the plans will be approved by authorities.’
No further details were given.
Beijing’s Sinotrans Group is the largest shareholder of Hong Kong-listed Sinotrans and Sinotrans Shipping.
Sources: Reuters and Quamnet