China Merchants Heavy Industry (CMHI) and China International Marine Container (CIMC) are expected to complete a merger of their offshore yard businesses during the fourth quarter of this year, reports said.
The merger is likely to involve CIMC Offshore Engineering and the offshore construction business of CMHI for the purpose of streamlining operations and optimising resources against the backdrop of the sluggish offshore market.
The local media reported that talks between CMHI and CIMC started more than a year ago and the merger plan has been making progress.
In April 2017, China Merchants Port Holdings agreed to transfer its entire 24.53% equity share in CIMC to its subsidiary CMHI, a move that is made to facilitate the merger.
The merger has received strong support from the Municipal Government of Shenzhen, the city where both companies are headquartered, reports said.
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