2 1 Shi Ji Jing Ji Bao Dao·2025-08-05 13:49Core Viewpoint - The merger between China Shipbuilding and China State Shipbuilding has received regulatory approval, marking a significant consolidation in the Chinese shipbuilding industry, with implications for resource synergy and market positioning [2][3][4]. Group 1: Merger Details - The merger transaction has been approved by the China Securities Regulatory Commission, with stock suspension starting from August 13 [2]. - China Shipbuilding will absorb China State Shipbuilding through a share swap, leading to the latter's delisting [2]. - Dissenting shareholders have the option for cash compensation, with total values of approximately 5.56 billion yuan and 13.02 billion yuan for China Shipbuilding and China State Shipbuilding respectively [2]. Group 2: Financial and Operational Impact - The combined total assets of the two companies will exceed 400 billion yuan by the end of 2024, surpassing the asset scale of the previous "South-North Car" merger [5]. - Projected revenues for 2024 are 785.84 billion yuan for China Shipbuilding and 554.36 billion yuan for China State Shipbuilding, with combined profits expected to exceed 50 billion yuan [5]. - The order backlog will total 54.92 million deadweight tons, representing 15% of the global order volume, making the merged entity the largest single shipbuilding entity globally [5]. Group 3: Market Context and Future Outlook - The merger aligns with the trend of central enterprise integration in China's shipbuilding industry, with a streamlined approval process taking only 71 days [6]. - The merger is expected to enhance the competitive position of the new entity in the global market, particularly as the shipbuilding industry enters a new growth cycle [8][9]. - Analysts predict that the merger will lead to further consolidation in the industry, benefiting from a long-term demand cycle for ship orders [8].