[photopress:logistics_sinotrans.jpg,full,alignright]The China Business News reports that the plan for Sinotrans to merge with China Changjiang National Shipping has been approved by the State-owned Assets Supervision and Administration Commission. The two central government-controlled companies will set up a working team to finalize the details.
Wuhan-based CSC Group, China’s largest river shipping company, controls two listed arms — Changjiang Shipping Group and Nanjing Water Transport Industry.
Beijing-based Sinotrans, parent of the Hong Kong-listed Sinotrans, is the country’s largest logistics service provider. It also indirectly controls Shanghai-listed Sinotrans Air Transportation Development.
It will take at least two months to finalize the plans due to complications in the corporate structure.
The Assets Supervision and Administration Commission has repeatedly said that it hopes to reduce the number of state enterprises directly under central government control via mergers or acquisitions which will make them easier to manage.
When the merger is completed, China will have four central government-controlled shipping companies — China Ocean Shipping which is COSCO, China Shipping Group, China Merchants Group and this new entity.
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