China has approved a second major merger of state-owned companies in an attempt to handle the increasing rate of overcapacity in the shipping industry.
This followed the recent approval of a merger of the container shipping units of shipping companies Cosco and China Shipping Container lines (CSCL) – with the new entity trading under the Cosco banner.
The new restructuring sees logistics provider Sinotrans and engineering specialist CSC Holdings becoming wholly-owned subsidiaries of China Merchants, according to Bloomberg business news agency.
