China's two largest shipbuilders are planning to merge, their listed arms said in separate exchange filings on Monday, the latest to join a wave of mergers among state-owned enterprises as the government overhauls the sector.
The move by China Shipbuilding Industry Corp (CSIC) and China State Shipbuilding Corp Ltd (CSSC), is subject to approvals from related authorities and there are still many details to be ironed out before the proposal can be finalized, the filings showed.
A slew of units belonging to the two companies, such as CSSC Offshore & Marine Engineering Group Co Ltd, China Marine Information Electronics Co Ltd and Hubei Jiuzhiyang Infrared System Co Ltd issued similar statements confirming their parent companies' plan of consolidation.
The two companies have multiple shipyards across China whose products range from aircraft carriers to commercial ships which carry oil and gas.
(Reporting by Meg Shen and Min Zhang; editing by Emelia Sithole-Matarise)