Hong Kong-listed Sinotrans Shipping has announced that it has been informed by its parent, Sinotrans & CSC, that the strategic reorganisation between China Merchants Group and Sinotrans & CSC has been completed.
Sinotrans & CSC has officially become a wholly-owned subsidiary of China Merchants while Sinotrans Shipping has become a listed subsidiary of China Merchants.
The central government of China approved the merger between the two state-run groups at the end of 2015 as part of the government’s efforts to reorganize state-run assets.
The merger aims to create economies of scale and synergies between the two groups in various sectors including shipping, logistics, energy, port and marine and offshore engineering.
China Merchants and Sinotrans & CSC had already integrated their tanker assets by establishing joint venture China VLCC in 2014.