China greenlights merger plan of two shipbuilding giants

China has given the go-ahead to the merger plan of its two largest shipbuilders, the country's top State-owned asset regulator said.

Approved by the State Council, China Shipbuilding Industry Corporation and China State Shipbuilding Corporation Limited will implement a joint reorganization, according to statement disclosed on Oct 25 by the State-owned Assets Supervision and Administration Commission.

The two will merge into one corporation, which will be administered by the commission.

China has stepped up the reform of State-owned companies in recent years, encouraging industrial mergers to improve operational efficiency and boost competitiveness.