China Shipping Group and China Ocean Shipping (China Cosco Holdings), have announced a multibillion-dollar deal where the two companies will combine operations.
The deal will cause the pair to restructure and divide themselves into four entities, namely shipping, port and terminals, oil and gas transportation and finance. The merge will unite the entities to become the world’s fourth largest global carrier.
Following the announcement, stakeholders of the merging companies were sent a document that said: “the leading shipping SOEs are required to focus on becoming large, strong, and outstanding groups. With international competitive edges, thereby providing support and guarantee for the economic globalisation of China.”
The deal has already been approved by China’s state cabinet and will be subjected to further regulatory approval from the US and Canada.