China Merchants in talks to acquire Sinotrans & CSC-Caixin

Sinotrans

17/11/2015 06:39

SHANGHAI, Nov 17 (Reuters) - Chinese transport conglomerate 
China Merchants Group  CNMGP.UL  is in talks to acquire 
logistics group Sinotrans & CSC  SASACG.UL  in the latest deal 
in the country's state sector, financial magazine Caixin 
reported late on Monday. 
    The two companies have been locked in reorganization talks, 
Caixin said, citing sources close to China Merchants.  
    Officials from both companies declined to comment on the 
talks when contacted by Reuters on Tuesday.  
    The two Hong Kong-listed units of Sinotrans & CSC - 
Sinotrans  0598.HK  and Sinotrans Shipping  0368.HK  - informed 
the Hong Kong stock exchange on Sunday that their parent group 
was considering a strategic reorganization that involved another 
unnamed state-owned enterprise.  
    Caixin said at the end of 2014, China Merchants had total 
assets worth 624.16 billion yuan ($97.92 billion) while 
Sinotrans & CSC had 109.12 billion yuan, making China Merchants 
the bigger player of the two.  
    The move comes as the Chinese government is encouraging 
restructuring and mergers among state-owned enterprises. The 
domestic shipping industry's two largest firms, China Ocean 
Shipping (Group) Company and China Shipping Group, are also in 
talks to merge, a source told Reuters in August.  urn:newsml:reuters.com:*:nL3N10M31U 
    China Merchants' business includes ports, shipping and 
financial services, while Sinotrans & CSC is involved in 
logistics and vessel chartering.  
 
($1 = 6.3744 Chinese yuan renminbi) 
 
 (Reporting by Brenda Goh; Additional Reporting by SHANGHAI 
Newsroom; Editing by Kavita Chandran) 
 ((brenda.goh@thomsonreuters.com; +86)(0)(21 6104 1763; Reuters 
Messaging: brenda.goh.thomsonreuters.com@reuters.net)) 
 
Keywords: CHINA SHIPPING/M&A