China’s two largest shipbuilding concerns, China State Shipbuilding Corporation (CSSC) and China Shipbuilding Industry Corporation (CSIC), have announced a merger in what promises to be the largest deal on the Chinese stock market in a decade.
As part of the agreement, CSSC will absorb CSIC through a share swap, creating a global shipbuilding giant. Both companies are subsidiaries of the state-owned shipbuilding corporation CSSC.
Despite the scale of the deal, control over the companies will remain unchanged. However, the merger is aimed at improving operational efficiency and combining strengths in shipbuilding and shipbuilding equipment.