SHANGHAI — China COSCO Shipping Corporation Limited, a new company formed by the restructuring of China’s top two shipping firms, was officially established on Feb 18.
By amalgamating COSCO and China Shipping, the new conglomerate will have the world’s largest total shipping capacity and the fourth biggest container fleet, with 610 billion yuan ($93.6 billion) of assets.
Xu Lirong, chairman of China Shipping, was announced as chairman of the new company, which is headquartered in Shanghai.
The restructuring will integrate the resources and talents of COSCO and China Shipping and achieve an economy of scale, Xu said, noting that the new company aims to be the global leader in shipping, integrated logistics and related financial services.
Approved by the State Council, China’s cabinet, in December, the restructuring plan of COSCO and China Shipping involve four listed arms, out of eight controlled by the two companies altogether.
The restructuring is the most complicated ever on China’s capital market, with 74 asset transactions worth 60 billion yuan.
China is restructuring and merging state-owned enterprises to increase their competitiveness. The top two high-speed rail makers and two leading nuclear power companies have already merged.