China Merchants Energy Shipping (CMES) and Sinotrans Air Transportation Development have denied media reports on the possible merger of their parent companies China Merchants Group and Sinotrans & CSC.
Local media reported that the merger of China Merchants Group and Sinotrans & CSC seems a certainty, quoting sources close to the state-owned Assets Supervision and Administration Commission.
The companies, in their filling to the Shanghai Stock Exchange on 8 September, stated neither the companies nor their controlling shareholders have received any notification about the merger.
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Regardless, CMES and Sinotrans & CSC have not denied the possibility of further co-operation and some insiders still believe that there is great potential for both companies to merge.
In September 2014 the two companies set up a joint-venture company, China VLCC, to form a top Chinese tanker operator and have a major share of the crude shipping market in China.
This post was sourced from IHS Maritime 360: View the original article here.