COSCO, China Shipping Merger to Result in New Company, Regulator Says

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

ReutersSHANGHAI, Jan 4 (Reuters) – China Ocean Shipping Group Co (COSCO) and China Shipping Group Co will become a new entity after merging, led by the latter’s current chairman, China’s state-owned assets regulator said on Monday.

The former rivals said in December they would merge through a series of asset swaps, creating units focused on distinct business areas such as container shipping and vessel leasing.

Together, COSCO and China Shipping control 488 billion yuan ($74.7 billion) worth of assets, Barclays analysts estimated.

After the merger, the resulting, newly established company will be chaired by Xu Lirong, the State-Owned Asset Supervision and Administration Commission said on its official microblog.

The merger comes as the government moves to consolidate state-owned industries.

($1 = 6.5340 yuan) (Reporting by John Ruwitch and Brenda Goh; Editing by Christopher Cushing)

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