China State Shipbuilding Corporation (CSSC) and China Shipbuilding Industry Corporation (CSIC) have denied reports of a combination saying that they are not planning a merger.
The companies released separate notices denying the merger talks following reports that China’s government was looking to combine the shipbuilders in an effort to create an industrial mammoth.
On March 30, Bloomberg cited undisclosed sources as saying that China’s state council gave its preliminary approval to merge CSSC and CSIC.
The shipbuilders informed that their parent companies have not received any written documents from the government about a merger or held talks on the matter.
After the merger reports, Bloomberg informed that the shares of China CSSC Holdings jumped 10 percent in Shanghai, while CSSC Offshore & Marine Engineering Group climbed 6.7 percent.
CSSC and CSIC have a combined revenue of at least CNY 508 billion (USD 80.8 billion).