China Securities Regulatory Commission (CSRC) and China’s Commerce Ministry approved China North Railway (CNR) and China South Railway (CSR) merger process. According to Xinhua News Agency the process could be completed by June.
In January, both the companies announced the merger plan to form a new USD 26bn company.
CNR and CSR currently have annual revenues of USD 16bn each and a combined market capitalisation of USD 26bn.
A joint statement by the companies earlier stated that this development is expected to enhance efficiency in the use of resources, effectively reduce operating costs and to realise the internationalisation strategy.
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