China Merchants Group Pushes Forward Plan to Consolidate Cargo Operations

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What’s new: China Merchants Group Ltd. (CMG) is pushing ahead with a major restructuring as the state-owned conglomerate moves to consolidate its container line operations amid a global shipping boom.

Antong Holdings Co. Ltd. (600179.SH) plans to issue shares to China Merchants Energy Shipping Co. Ltd. (601872.SH) to buy the latter’s 100% stake in a container liner and 70% stake in a ro-ro shipping company, according to a stock exchange filing dated Thursday.

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China Merchants Group Ltd. (CMG) is restructuring to consolidate its container line operations, with Antong Holdings buying stakes from China Merchants Energy Shipping.
The deal, pending regulatory approval, would give the combined company a container capacity of 131,000 TEUs, ranking it 19th globally.
Post-deal, China Merchants Energy Shipping will control Antong, enhancing its operational capacity, particularly in international trade.

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Who’s Who

China Merchants Group Ltd.: China Merchants Group Ltd. (CMG) is a state-owned conglomerate in China pushing ahead with a major restructuring to consolidate its container line operations. CMG is the controlling shareholder of Antong Holdings Co. Ltd. and has a Shanghai-listed shipping arm, China Merchants Energy Shipping Co. Ltd. The restructuring aims to enhance Antong's transport capacity and expand its service coverage, pending regulatory approval.

Antong Holdings Co. Ltd.: Antong Holdings Co. Ltd. (600179.SH) is a leading provider of domestic container shipping services in China. Following a restructuring deal, it plans to acquire stakes in container and ro-ro shipping from China Merchants Energy Shipping Co. Ltd. (601872.SH), which will make China Merchants Energy Shipping its controlling shareholder. This deal, pending regulatory approval, will boost Antong’s container capacity to 131,000 TEUs, ranking it 19th globally, and expand its service coverage internationally.

China Merchants Energy Shipping Co. Ltd.: China Merchants Energy Shipping Co. Ltd. (601872.SH) is a Shanghai-listed subsidiary of China Merchants Group Ltd. (CMG). It is involved in container and ro-ro shipping. The company is set to transfer its 100% stake in a container liner and 70% stake in a ro-ro shipping company to Antong Holdings Co. Ltd. as part of a major restructuring plan. This transaction is pending regulatory approval.

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What Happened When

Late May 2024：: China Merchants Energy Shipping announced it would spin off its container and ro-ro shipping subsidiaries, revealing that Antong would gain a controlling stake in both companies.

Thursday, June 13, 2024：: Antong Holdings Co. Ltd. filed a stock exchange filing indicating plans to issue shares to China Merchants Energy Shipping Co. Ltd. to buy the latter’s 100% stake in a container liner and 70% stake in a ro-ro shipping company.

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