Shares are to remain suspended in two of China’s largest shipping companies – Cosco Pacific and China Shipping Container Lines – as both companies look into restructuring their assets under what could be a complex matter, according to gCaptain.
It was previously reported by PTI that the two shipping lines were planning to merge their shipping businesses in an attempt to climb the global rankings to fourth position and effectively give their shipping portfolios a boost.
Shares were halted as a result of ‘planning issues’ and sources of both companies have revealed that both companies are currently in talks to merge their companies.
Beijing initially ordered the merger in early August, 2015 in a bid to recover from a declining economy, however it has proved to be a complex process as the two companies have distinct earnings records, as well as a tangling of stock listings.
It appears that the lines are already committed to such a master plan after each company announced plans to order more megaships.
Cosco announced on the week commencing September 7, 2015 that it will be purchasing eleven 19,000 TEU ships to boost its order book from 11 to 20, with CSCL also announcing an order at the same time for 10 ultra-large container ships at a total cost of US$1.5 billion.
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