China’s regulator of state-owned asset is mulling efforts to merge its two largest producers of railroad equipment, several sources told to Chinese publication Caixin.
The State Council, the cabinet, has basically decided to consolidate China CNR Corp. Ltd. and CSR Corp. Ltd., but the deal is still in the preliminary stages and the two companies have not started talks, one source close to the matter said. The merger is aimed at creating a more competitive market player to boost overseas expansion in the high-speed rail industry, a source close to SASAC said. The SASAC is holding internal discussions about a deal, and no detailed arrangements have been settled.
China Railway Corp. (CRC), the state operator of the country’s railroad network, has opposed deal and the two companies are lukewarm, the source said.
Sources from the CRC, the State-owned Assets Supervision and Administration Commission (SASAC), and the two companies confirmed the plan.
Source: http://english.caixin.com
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