Merger ahead for two Chinese trainmakers

Beijing

CHINA'S State Council has ordered the merger of trainmakers China Northern Locomotive & Rolling Stock Industry Group Corp and CSR Group into one company, according to government officials involved in the transaction.

A consolidation will facilitate efforts to win contracts abroad, said the officials, who asked not to be identified as they are not authorised to speak to the media. Details of the transaction are yet to be set, and China International Capital Corp is drafting a plan for merging the two companies' listed arms, they said.