CX Briefing: Shipbuilders Near Mega Merger

A rundown of the news making headlines in and around China:

Shipbuilding giants near merger: China’s two largest state-owned shipbuilding conglomerates have entered the final stage of a long-planned merger. China State Shipbuilding Corp. Ltd. (CSSC) (600150.SH) and China Shipbuilding Industry Co. Ltd. (CSIC) (601989.SH) announced Monday they will implement a cash swap option for “dissenting shareholders” who had voted against the merger. CSSC’s shares will be bought at 30.02 yuan ($4.19) and CSIC’s 4.03 yuan apiece. After the merger — approved by the securities regulator on July 18 — CSIC will delist, transferring all assets, liabilities and business operations to CSSC. Both companies’ stocks will be suspended from trading on Aug. 13. Through the merger, the pair aim to resolve internal competition and consolidate into a single global shipbuilding giant with over 30% market share. CSSC and CSIC closed Monday at 34.04 yuan and 4.68 per share, respectively, valuing the merged entity at more than 250 billion yuan.