China Ocean Shipping Group Co (COSCO) and China Shipping Group Co will become a new entity after merging, led by the latter’s current chairman, China’s state-owned assets regulator said on Monday.
The former rivals said in December they would merge through a series of asset swaps, creating units focused on distinct business areas such as container shipping and vessel leasing.
Together, COSCO and China Shipping control 488 billion yuan ($74.7 billion) worth of assets, Barclays analysts estimated.
After the merger, the resulting, newly established company will be chaired by Xu Lirong, the State-Owned Asset Supervision and Administration Commission said on its official microblog.
The merger comes as the government moves to consolidate state-owned industries.
(Reporting by John Ruwitch and Brenda Goh; Editing by Christopher Cushing)