The upcoming large-scale merger between the two Chinese shipping conglomerates China Ocean Shipping Group (Cosco) and China Shipping Group (CSG) will involve a combination of a several of the two state-owned groups' business units. The container units, which have been subject to most of the attention, are not the only business involved in the merger, as the transaction also covers tanker and bulker, according to a plan for the reconfiguration submitted by the two companies to the stock exchanges in Shanghai and Hong Kong.
With the merger, the two companies will split the businesses so that Hong Kong-listed China Cosco becomes the world's fourth-largest container carrier with a market share of 7.7 percent after being consolidated with the China Shipping Line (CSCL) vessels - a move that includes 33 container shipping-related units and associated companies for 1.14 billion yuan (USD 177 million), reports the Wall Street Journal. Meanwhile, CSCL will, going forward, focus on leasing out container ships and containers. When the merger is complete, Cosco's container business will be listed.