Cosco and China Shipping commence integration plans as merger looms

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It now appears to be official – prompted by the central government in Beijing, China’s two major container lines are planning a merger following several torrid years of severe financial losses. It will not be an easy process however, given the wide portfolios of the two conglomerates, as well as the fact that they have very similar asset profiles and one analyst predicted it could take over two years. That said, trading in their respective shares has now been suspended on China’s bourses.