China’s state-owned conglomerate China Merchants Group agreed to buy a majority stake in AVIC International Holdings’ shipbuilding unit in a 163 million yuan ($22.8 million) deal.

China Merchants Industry Investment (CMII), a subsidiary of China Merchants, signed an agreement to acquire 73.87% of Singapore-listed Avic International Maritime Holdings for S$0.15 ($0.11) a share, AVIC said Wednesday in a filing. The stake represents all of AVIC’s holding in Avic International Maritime.

The deal marks another step by AVIC to exit the slowing shipbuilding industry. After the transaction with CMII, shipbuilding will account for 0.23% of AVIC’s total assets as of the end of 2018, AVIC said. As a state-owned investment conglomerate, AVIC’s assets range from high-tech and retail to engineering and logistics.

In April, AVIC sold another shipbuilding unit, AVIC Weihai Shipyard Co., to China Merchants.

China Merchants is leading a consolidation of China’s state-owned shipbuilding assets. Caixin reported in July that its subsidiary China Merchants Industry Holdings Co. Ltd. was in talks with China International Marine Containers (Group) Ltd. (CIMC) and AVIC on a strategic merger of their shipbuilding and marine engineering businesses.

Related: Exclusive: Three More Chinese Shipbuilders in Merger Talks