China State Shipbuilding Corporation and China Shipbuilding Industry Corporation set to merge, creating the world's largest shipbuilder
On the evening of September 2, China’s shipbuilding industry announced a historic merger between two of its largest players, China State Shipbuilding Corporation (CSSC) and China Shipbuilding Industry Corporation (CSIC), according to Xinde Marine.
This merger, expected to be the largest in the A-share market in nearly a decade.
CSSC and CSIC, both subsidiaries of the central state-owned enterprise China State Shipbuilding Corporation, have announced that CSSC will absorb CSIC through a stock swap, creating a supergiant in the global shipbuilding industry.
The transaction, which is classified as a major asset restructuring under Chinese regulations, will not change the ultimate control of either company. However, the merger is expected to enhance operational efficiency and consolidate the companies' strengths in shipbuilding and marine engineering.
The timing of this merger aligns with a period of robust growth for both companies.
In the first half of 2024, CSSC reported revenue of RMB 36.017 billion, a 17.99% year-on-year increase, with net profit rising by an impressive 155.31%.
CSIC also saw significant gains, with revenue reaching RMB 22.102 billion, up 31.05%, and net profit increasing by 177.13%.
Industry experts believe that the merger of CSSC and CSIC will resolve existing competition between the two entities, streamline operations, and drive deeper integration of advanced technologies.
This merger looks to set a new benchmark for industry consolidation, demonstrating the potential of state-owned enterprise reform and the emergence of new production capabilities. As the world’s largest shipbuilder, the merged entity will play a crucial role in shaping the future of the global maritime industry.
