China Merchants Group is planning to consolidate its container line operations amid a boom in the global shipping industry, reports Caixin. China Merchants Energy Shipping, the Shanghai-listed cargo shipping unit of China Merchants Group, aims to spin off its container shipping arm Sinotrans Container Lines and car carrier Guangzhou China Merchants RO-RO Transportation (CMES RoRo).
Antong Holdings, a container shipping company controlled by China Merchants Group, will acquire the controlling stakes in Sinotrans and CMES RoRo and issue new shares to fund the deal, according to a preliminary agreement between Antong and China Merchants Energy Shipping. The deal is pending regulatory approvals.
An analyst at a brokerage house said the spin-off doesn’t mean China Merchants Energy Shipping is giving up the container and vehicle shipping business. Instead, the company is likely to take control of Antong in the future after consolidating China Merchants Group’s cargo shipping businesses under Antong.
Source: Hellenic Shipping News
