China Merchants Energy Shipping (CMES) has decided to integrate the shipping assets of its subsidiary Sinotrans & CSC Holdings in a transaction worth over RMB 6.57 billion (USD 954 million).
The integration move comes amid China Merchants’ efforts to deal with rising market competition, the company said.
The assets acquired in the deal include 9 Capesize vessels, 11 Panamax vessels, 21 Handy vessels, 25.5% equity in 5 ARC7 ice-breaking LNG carriers intended for the Yamal LNG project and Sinotrans Shipping Management Co., Ltd.
After the completion of the acquisition, CMES will significantly bolster its bulk carrier fleet, especially in the Capesize and Handy sector, boosting the company’s competitiveness.
The acquisition comes on the back of the merger agreement between China Merchants Group and Sinotrans & CSC Holdings which was finalized in April 2017.
With the strategic reorganization, China’s Sinotrans & CSC became a wholly-owned subsidiary of Hong Kong-based China Merchants.
Under the merger conditions, the two companies agreed to reorganize their tanker shipping business, as well as other businesses including energy and dry bulk shipping, property development, ports, marine, and offshore engineering and logistics.
Source: World Maritime News