South Korean’s SM Line has announced the merger with Woobang Engineering & Construction, an affiliate construction unit of the company’s parent Samra Midas Group.
At the end of August, Samra Midas Group announced that it would merge SM Line with two other companies it owns, Korea Shipping Corporation and Woobang Engineering & Construction.
The move aims to ease the financial burden on SM Line, which was established to acquire the assets of bankrupt Hanjin Shipping.
Samra Midas Group said SM Line would continue investments to expand its fleet of container ships and service routes and the merger would expand SM Line’s capital, improve its cash flow, and enhance its credit standing.
The merger is expected to take place by December 31.
SM Line, founded at the turn of the year, has grown incredibly fast and stands on the threshold of joining the ranks of the top 20 global liners.