Two shipbuilders mull merger

Move will enhance CSSC, CSIC's global competitiveness, earnings prospects

The possible merger of China State Shipbuilding Corp (CSSC) and China Shipbuilding Industry Corp (CSIC), the country's two biggest State-owned shipbuilders by production capacity, will allow them to compete against established rivals in South Korea and Europe, industry experts said on Tuesday.

The listed companies announced in stock exchange filings late on Monday the two shipbuilding groups are planning a strategic restructuring, but they said the plan needs to be approved by the relevant authorities.