China logistics company Sinotrans Group will merge with the country's top river-shipping operator this year to form a US$15 billion logistics giant.
Sinotrans and Yangtze Transportation (Group) Corp have been in discussions for some time and are now close to an agreement.
Last Wednesday, Sinotrans, which has joint ventures with Deutsche Post's DHL and Korean Air, said it was considering merging with Yangtze Transportation.
If the merger goes ahead, the move would create a sprawling transport corporation operating everything from marine, oil and river shipping to express delivery, freight forwarding and warehousing.
The merger is expected to be completed by the year-end.
Analysts believe the merger will open opportunities for Sinotrans' listed units – Sinotrans Ltd and Sinotrans Shipping – to buy assets from their parent in future.
After merging with Yangtze Transportation, which had total assets of $5.8 billion in 2007, Sinotrans would become the nation's largest shipping and logistics conglomerate after the marine-oriented Cosco group.
Sinotrans and Yangtze Transportation, which controls two mainland Chinese-listed firms – Nanjing Tanker and Changjiang Phoenix – will form a group named the China Logistics Group to hold the interests of both parties.
Sinotrans and Yangtze Transportation (Group) Corp have been in discussions for some time and are now close to an agreement.
Last Wednesday, Sinotrans, which has joint ventures with Deutsche Post's DHL and Korean Air, said it was considering merging with Yangtze Transportation.
If the merger goes ahead, the move would create a sprawling transport corporation operating everything from marine, oil and river shipping to express delivery, freight forwarding and warehousing.
The merger is expected to be completed by the year-end.
Analysts believe the merger will open opportunities for Sinotrans' listed units – Sinotrans Ltd and Sinotrans Shipping – to buy assets from their parent in future.
After merging with Yangtze Transportation, which had total assets of $5.8 billion in 2007, Sinotrans would become the nation's largest shipping and logistics conglomerate after the marine-oriented Cosco group.
Sinotrans and Yangtze Transportation, which controls two mainland Chinese-listed firms – Nanjing Tanker and Changjiang Phoenix – will form a group named the China Logistics Group to hold the interests of both parties.