China CNR Corp. Ltd. and the CSR Corp. Ltd. will merge into a new company, according to a CSR Corp. announcement filed with the Shanghai Stock Exchange, writes Xinhua.
The merger will be conducted on the principles of equality, joint development, stable progress, and standard operations, according to the statement.
The new company, which will inherit all the assets, liabilities, businesses, staff, contracts, certificates as well as all other rights and obligations of the two companies, will be named CRRC Corporation Ltd.
In technical operation, the merger will take place in the form of the CNR Corp. to be merged into the CSR Corp. through a stock swap agreement between the two companies– 1 CNR Corp. share for 1.1 shares to be issued by the CSR. Corp., the announcement said.
The statement said that the merger aims to build a new transnational and globally leading solution provider of high-end railway transport equipment.
The two companies, both listed in Shanghai and Hong Kong, once controlled China’s entire high-speed rail market. They have produced about 80 percent of cargo trains in China and the majority of subway trains.