China State Council approves Cosco, China Shipping merger

[BEIJING] China's State Council has approved a merger of the country's two biggest shipping conglomerates, China Ocean Shipping (Group) Company (COSCO) and China Shipping Group Co, the state asset supervisor said on its website on Friday.

The combined entity would become the world's fourth-largest container shipper with a roughly 8.1 per cent market share. That would be far behind AP Moeller - Maersk A/S, Mediterranean Shipping Co SA and CMA CGM SA.

Premier Li Keqiang last week said the government would spend the next two years eliminating overcapacity, with long-term money-losing companies going "under the knife."

REUTERS