Chinese regulator clears merger of shipbuilding giants CSSC, CSIC

 

China State Shipbuilding Corporation has given regulatory approval to absorb China Shipbuilding Industry Company in a 115.2 billion yuan share-swap merger, the largest of its kind in the history of China’s A-share market. Once finalised, the move will consolidate the country’s two largest shipbuilders into a single listed entity under the CSSC name. 

The Shanghai Stock Exchange approved the deal on July 4. CSIC will delist, with its shareholders receiving newly issued CSSC shares based on a fixed exchange ratio. The combined firm will inherit all of CSIC’s assets, contracts and liabilities, formalising a union that has been taking shape since the state orchestrated their parent-level merger in 2019. Together, CSSC and CSIC accounted for nearly 17% of all global ship orders last year, including nearly 29 million deadweight tons in newbuilds. That scale is now matched by formal structure, said a report.

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