SHANGHAI, Nov 17 (Reuters) – Chinese transport conglomerate China Merchants Group is in talks to amass logistics group Sinotrans & CSC within the newest deal within the nation’s state sector, monetary journal Caixin reported late on Monday.

The two corporations have been locked in reorganization talks, Caixin stated, citing sources near China Merchants.

Officials from each corporations declined to touch upon the talks when contacted by Reuters on Tuesday.

The two Hong Kong-listed models of Sinotrans & CSC – Sinotrans and Sinotrans Shipping – knowledgeable the Hong Kong inventory trade on Sunday that their mum or dad group was contemplating a strategic reorganization that concerned one other unnamed state-owned enterprise.

Caixin stated on the finish of 2014, China Merchants had whole belongings price 624.16 billion yuan ($97.92 billion) whereas Sinotrans & CSC had 109.12 billion yuan, making China Merchants the larger participant of the 2.

The transfer comes because the Chinese authorities is encouraging restructuring and mergers amongst state-owned enterprises. The home transport trade’s two largest corporations, China Ocean Shipping (Group) Company and China Shipping Group, are additionally in talks to merge, a supply instructed Reuters in August.

China Merchants’ enterprise contains ports, transport and monetary companies, whereas Sinotrans & CSC is concerned in logistics and vessel chartering. ($1 = 6.3744 Chinese yuan renminbi) (Reporting by Brenda Goh; Additional Reporting by SHANGHAI Newsroom; Editing by Kavita Chandran)

(c) Copyright Thomson Reuters 2015.

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