China to revamp 2 state-owned shipping firms
Print Edition
CHINA will restructure two of its biggest state-owned shipping companies, the government said yesterday as it seeks to reform lumbering public companies to try to bolster growth.
The State Council, or Cabinet, approved the restructuring of China Ocean Shipping Group, known as Cosco, and China Shipping Group, the State-owned Assets Supervision and Administration Commission said on its website, without detailing how the restructuring will be carried out.
The two companies may come to a full merger or combine some of their businesses, Bloomberg News reported in August, after several listed arms of the two giants halted trading as their parent companies were “planning on crucial matters.”
COSCO is the largest shipping company in the country by fleet size, and China Shipping Group has total assets of 200 billion yuan (US$31.1 billion), according to their official websites.
If merged, the new entity would have a 7.7 percent share of the global container market and become the fourth-biggest company in the industry, Bloomberg News reported, following APM-Maersk, Mediterranean Shg Co and CMA CGM Group, according to Alphaliner’s ranking.
The approval followed news of the merger of two of China’s largest metals firms, China Minmetals Corp and China Metallurgical Group Corp, announced earlier this week.
China, the world’s second-largest economy, says it is overhauling its dominant state-owned sectors as it grapples with stalling growth.
It has already merged its top two train makers — China CNR Corp and CSR Corp — into a single conglomerate to avoid competition between the two as China vies for lucrative rail contracts overseas against Germany’s Siemens and Bombardier of Canada.
The Xinhua news agency said in April that China was looking to merge scores of its biggest state-owned enterprises to create around 40 national champions.
Total revenue from national SOEs fell 7.1 percent annually to 13.21 trillion yuan in the first half of 2015, data from the finance ministry showed.
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