State approves China Merchants’ purchase of Sinotrans & CSC Holdings

State approves China Merchants’ purchase of Sinotrans & CSC Holdings

China Merchants has received approval from China’s Assets Supervision and Administration Commission of the State Council for its proposed acquisition of Sinotrans and CSC Holdings.

China Merchants wants to reorganise the two companies into its wholly owned subsidiaries, but China Merchants is still reserving the right not to consolidate the companies if it chooses.

The merger aims to create economies of scale and synergies between the companies in logistics, energy and dry bulk shipping, property development, ports and marine and offshore engineering, a filing said.

China Merchants and Sinotrans have already integrated their tanker assets by establishing joint venture China VLCC in 2014.

Meanwhile, there are no plans for a buy-out of Sinotrans Air Transportation Development Co. China Merchants intends to apply to the China Securities Regulatory Commission for a waiver so the company will not be obliged to make a mandatory general offer for the air freight company.

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.

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