China Approves COSCO, China Shipping Merger, Announcement Expected Soon -Report

Photo: Sheila Fitzgerald / Shutterstock.com
Photo: Sheila Fitzgerald / Shutterstock.com

The Chinese government has reportedly approved the long-anticipated merger between two of China’s largest shipping groups, China Ocean Shipping Group Co (COSCO) and China Shipping Group, according to a report Beijing-based Caixin Online.

The merger between COSCO and China Shipping will create the world’s fourth largest container shipping company.

According to Caixin, a formal announcement from the companies is expected December 11.

The two companies have had shares of their listed units suspended since early August as they prepare for the merger.

In September, both companies announced that their shares would remain suspended pending a major announcement that “may involve asset restructuring”.