China’s state-owned enterprise (SOE) sector is set for a major shake-up as two shipbuilding giants, each with a market value exceeding RMB 100 billion, move closer to a historic merger.
Source: Financial Times (China)
China’s state-owned enterprise (SOE) sector is set for a major shake-up as two shipbuilding giants, each with a market value exceeding RMB 100 billion, move closer to a historic merger. On January 7, China CSSC Holdings Limited (CSSC) and China Shipbuilding Industry Corporation Limited (CSIC) announced that they had received regulatory approval from the State-owned Assets Supervision and Administration Commission (SASAC) and other authorities for their proposed transaction. Under the plan, CSSC will issue A-shares to CSIC shareholders to absorb and merge with the company.
Upon completion, CSIC will cease trading, delist, and dissolve as a legal entity, while CSSC will remain as the surviving entity. The merger will not affect CSSC’s controlling shareholders, with CSSC Group and SASAC retaining ultimate control. However, the transaction is still subject to further internal approvals and regulatory clearances, leaving its final implementation uncertain.
CSSC, a core subsidiary of CSSC Group, focuses on shipbuilding for both military and civilian use, ship repair, offshore engineering, and electromechanical equipment. CSIC specializes in naval vessel design and manufacturing, spanning marine defense, offshore development equipment, marine transport vessels, deep-sea exploration systems, ship retrofitting, and emerging strategic industries.
The merger is designed to consolidate CSSC and CSIC’s shipbuilding and repair operations under CSSC, streamlining resources and enhancing efficiency. The companies stated that the move aims to improve operational quality, resolve intra-group competition, protect the interests of minority shareholders, and strengthen their focus on the maritime industry.
Looking ahead, CSSC plans to seize opportunities arising from the transformation and upgrading of the global shipbuilding industry. The company aims to drive innovation and promote high-end, green, intelligent, digital, and standardized shipbuilding practices. Its ultimate goal is to build a world-class enterprise with international competitiveness.