Dalian Port Group has announced a merger plan to take over Yingkou Port through a share swap deal.
Under the merger deal, Dalian Port will absorb the entire assets and liabilities of Yingkou Port for a price of RMB16.7bn ($2.4bn) and the latter will cancel its business registration and delist from Shanghai Stock Exchange.
Additionally, Dalian Port will issue new shares to 35 specific investors to raise up to RMB2.1bn ($300m).
The merger is part of the central government’s ongoing efforts to consolidate regional port assets in order to solve overcapacity issues. Three major ports in Liaoning province, Dalian Port, Yingkou Port and Jinzhou Port, formed Liaoning Port Group in January 2019 and the local government handed over the control of the group to China Merchants Group in June 2019.
Following the completion of the merger, Dalian Port’s status as a major gateway port in northeast China will be further strengthened. The port will have a comprehensive business portfolio, covering container, automobile, coal, grain, iron ore and petrochemical products.
In 2019, Dalian Port and Yingkou was positioned 10th and 13th in the Chinese port rankings in terms of annual cargo throughput.