World's fourth-largest shipper created after tie-up of Cosco and China Shipping
The State Council has approved the merger of the two biggest shipping conglomerates, China Ocean Shipping (Group) (Cosco) and China Shipping Group, in the government's latest effort to make the industry more competitive globally.
The combined entity would become the world's fourth-largest container shipper, with a market share of roughly 8.1 per cent. That would be far behind AP Moeller-Maersk, Mediterranean Shipping and CMA CGM.
Denmark's Maersk warned last month that global demand for container transport this year would grow at a slower pace than previously expected.
"With the approval of the State Council, Cosco and China Shipping will be restructured," the state asset supervisor said on its website yesterday, using a phrase commonly understood to refer to the merger. It gave no other details.
A listed unit of China Shipping, China Shipping Network Technology, said in a stock exchange filing that the merger would focus on freight transport, container shipping and oil transport services.
The listed unit also said its shares would resume trading on the Shenzhen Stock Exchange on Monday.