Chinese logistics and shipping giant Sinotrans has announced that it has reached an agreement to acquire the entire capital of China Merchants Logistics Holdings for RMB5.45bn ($818m) as part of the ongoing restrucuturing process between the Sinotrans & CSC and China Merchants Group.
The purchase price will be paid via issuing new shares to China Merchants.
Sinotrans expected that the transaction can help reduce competition between the company and its controlling shareholder and it believes the deal will enable the company to further solidify its position as the largest logistics company in China and to provide the group with opportunity to tap into new markets.
Sinotrans & CSC and China Merchants completed a strategic reorganisation in April this year, and currently the two parties are further consolidating the assets through internal restructuring.
