The landmark deal, valued at over 115 billion yuan, will become the biggest absorption merger in the history of China's A-share market.
In 2024, a 115,000 dwt crude oil tanker meeting China's latest environmental emission standards was
by GAO Jing
China State Shipbuilding Corporation Limited (CSSC) has received regulatory approval to absorb China Shipbuilding Industry Company Limited (CSIC), paving the way for a shipbuilding giant that will lead the world in assets, revenue and orders.
The Shanghai Stock Exchange's merger and acquisition committee granted the green light late on Friday. The transaction still requires registration with the China Securities Regulatory Commission and other procedural clearances before it can be formally executed.
Under the terms, CSSC will issue new A-shares to all CSIC shareholders in exchange for their holdings, in a swap valuing CSIC shares at 5.032 yuan each and CSSC shares at 37.59 yuan, implying a conversion ratio of 1 CSIC share for 0.1339 CSSC share. The combined deal is worth about 115.2 billion yuan, exceeding half the total assets of each company.
Upon completion, CSIC will delist, and CSSC will inherit all its assets, liabilities, contracts and employees.
The merger continues the consolidation of China's shipbuilding industry, following the 2019 combination of the former "South Ship" (China State Shipbuilding Corporation) and "North Ship" (China Shipbuilding Industry Corporation) into the state-owned China State Shipbuilding Group. Both CSSC and CSIC were subsidiaries under this umbrella, which is the world's largest shipbuilding conglomerate.
In 2024, CSSC secured orders for 154 ships totaling 12.72 million deadweight tons, while CSIC booked 103 ships amounting to 15.89 million deadweight tons. Together, they accounted for nearly 17% of all new global ship orders last year, according to data from Clarksons.
After the merger, China State Shipbuilding Group will remain the controlling shareholder, holding about 49% of the combined company, with the surviving entity retaining the CSSC name.
The integration aims to end internal competition in shipbuilding and repair, accelerate transformation and support Beijing's push to build a world-class navy. To further reduce overlap, the parent group pledged to inject assets from Hudong-Zhonghua, one of its top yards, into CSSC within three years.
