Trainmakers seek delisting from the Shanghai exchange ahead of merger

Domestic train manufacturers China CNR Corp and CSR Corp on Sunday submitted an application to the Shanghai Stock Exchange to terminate trading in their shares, putting them on track in a merger process to create the world's largest rail equipment conglomerate in terms of sales.

The two companies jointly announced the application for the withdrawal of CNR's listing from the SSE, after gaining approval from the central government and foreign anti-monopoly agencies.

Under the arrangement, CSR will issue shares to CNR's shareholders, with a swap ratio of one CNR share for 1.1 CSR share. CNR will delist from the Shanghai and Hong Kong stock markets.