According to The Wall Street Journal, China’s state-owned China State Shipbuilding Corporation (CSSC) is preparing to acquire China Shipbuilding Industry Corporation (CSIC) through a share swap.
The newly merged company will control around 20% of the world’s shipbuilding capacity. Its assets and market value are estimated in the tens of billions of dollars.
Previously, CSSC and CSIC were part of the same entity, but Beijing split them in 1999 to promote competition. CSIC mainly focuses on commercial shipbuilding but also has a naval division. Notably, CSIC built China’s first aircraft carrier — “Shandong”.
The WSJ notes that by merging these two major companies, Beijing aims to increase efficiency in the sector and strengthen its resilience against potential industry shocks.
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