Rival China trainmakers merge to boost high-speed rail push abroad
SHANGHAI Dec 30 (Reuters) - China's top two trainmakers said on Tuesday that they will merge, creating a $26 billion company able to compete with the likes of Germany's Siemens and Canada's Bombardier for global rail deals.
State media reported in October that state-owned firms China CNR and CSR Corp were in merger talks.
A joining of the firms - which have so far competed against each other to sell trains abroad - will help solidify China's campaign to sell its high-speed technology abroad.
Under the deal, CSR will issue shares to CNR's shareholders, with a swap ratio of one CNR share for 1.1 CSR share.
"A merged new firm will further improve product mix...enhance technological strength and optimise global resource allocation," the companies said in a statement.
The new company would have a combined annual revenue of about 200 billion yuan ($32.71 billion) based on 2013 company data, compared with Siemens' 75.9 billion euros ($96.5 billion) revenue last year and Bombardier's $18.2 billion.
CNR and CSR, which are already the world's largest train makers thanks to robust domestic sales, halted trading on Oct. 27 and issued statements saying they would resolve "major issues" soon.
Hong Kong-listed shares in CNR and CSR closed at HK$7.66 and HK$7.89 respectively on Oct. 24 giving them a combined market value of HK$202 billion ($26 billion).
Trading in both firms will restart on Dec. 31, the statement said. Continued...