COSCO and CSCL merger looms – again

Local Chinese media reports state that China Ocean Shipping Company (COSCO) and China Shipping Container Lines (CSCL) have been ordered, by the Chinese authorities, to develop plans towards a much expected merger in order for them to recover from the current slump in the Chinese and international markets.

Previous attempts for greater cooperation between the two shipping lines failed in 2012 and 2014; however, it is believed that this time the Chinese government appears to have lost patience with the lack of progress.

Trading of shares in both groups was suspended on Monday (10th) pending an announcement that is expected this Friday (14th), according to Alphaliner, which reported that in a statement from CSCL, the carrier had received notice from its controlling shareholder, the China Shipping Group (CSG), that the group was contemplating “certain material matters which may involve the company and which may be an inside information.”