China State Shipbuilding Corp (CSSC) and China Shipbuilding Industry Co (CSIC), two of the world’s largest shipbuilders, are to merge.
According to media reports, the two leading Chinese state-owned shipbuilding groups CSSC and CSIC have received approval for their planned mega-merger from both their shareholders and the government.
CSIC announced its withdrawal from the stock exchange. All assets, liabilities, employees, contracts and all other rights and obligations of the company are to be taken over by CSSC via a share swap. However, final approval from the supervisory authorities is still pending. The transaction is valued at around 15.85 billion dollars.
CSSC is the world’s largest shipbuilding group with more than a tenth of the global order backlog. The combined company would control more than half of China’s shipbuilding capacity.
