Xin Lang Cai Jing·2025-08-05 07:53Core Viewpoint - The long-awaited merger between China Shipbuilding Industry Corporation (CSIC) and China Shipbuilding Heavy Industry Corporation (CSHC) is nearing completion, with significant announcements made regarding shareholder rights and stock trading halts [1][3]. Group 1: Merger Details - CSIC announced a stock suspension starting August 13, 2025, to facilitate the implementation of dissenting shareholders' acquisition rights, with an estimated 18.54 million shares eligible for this process at a price of 30.02 CNY per share, representing a 13.39% premium over the closing price of 34.04 CNY on August 4, 2025 [1]. - CSHC similarly announced a stock suspension for the implementation of dissenting shareholders' cash options, with up to 323 million shares eligible at a price of 4.03 CNY per share, compared to a closing price of 4.68 CNY on August 4, 2025 [2]. Group 2: Historical Context - The merger process began in October 2019, when the State-owned Assets Supervision and Administration Commission approved the restructuring of CSIC and CSHC [3]. - In September 2024, CSIC announced plans to absorb CSHC through a share issuance to all CSHC shareholders [3]. Group 3: Company Performance - Both companies forecast a combined net profit of 4.3 billion to 4.9 billion CNY for the first half of 2025, reflecting a year-on-year growth of approximately 121% to 152% [4]. - CSIC expects a net profit of 2.8 billion to 3.1 billion CNY, a growth of 98.25% to 119.49%, while CSHC anticipates a net profit of 1.5 billion to 1.8 billion CNY, with a growth of 181.73% to 238.08% [4]. Group 4: Industry Impact - As of May 2025, CSIC held 322 civil ship orders totaling 24.61 million deadweight tons, with production capacity scheduled until 2029, indicating a recovery in demand and potential synergies from the merger [5]. - Post-merger, the combined entity is expected to hold approximately 15% of global ship orders, over 14% of global ship completions, and more than 16% of new orders, enhancing competitiveness and global influence in the shipbuilding industry [5].