China State Shipbuilding Corporation (600150) has officially completed its share-swap merger with China Shipbuilding Industry Corporation! This transaction sets a new record in A-share market history, with combined total assets exceeding RMB 400 billion. On September 16, an additional 3.053 billion shares were listed. This marks a major breakthrough in state-owned enterprise reform, giving rise to the world's largest publicly listed shipbuilding company.

The dust has settled on the century's merger and acquisition deal.

On September 11, China State Shipbuilding Corporation announced the completion of its share-swap merger with China Shipbuilding Industry Corporation. This marks the largest merger transaction in the history of China's A-share market. Following the merger, the combined entity's total assets will exceed RMB 400 billion, with annual revenue surpassing RMB 130 billion. The company's order backlog remains globally leading.

Key Transaction Details

1. Exchange Ratio: 1 share of China Shipbuilding Industry Co., Ltd. (CHD) (HK$5.032 per share) exchanges for 0.1339 shares of China State Shipbuilding Corporation Limited (CSSC) (HK$37.59 per share)

2. New Shares Issued: 3.053 billion shares, of which 1.45 billion shares are subject to a 6-month lock-up period

3. Listing Date: September 16, 2023, on the Shanghai Stock Exchange Main Board

Strategically significant

This integration represents a key initiative to implement the Party Central Committee's reforms for state-owned enterprises, achieving three major breakthroughs:

1.Resolving issues of intra-industry competition

2.Consolidating R&D and manufacturing resources

3.Establishing a national pillar for “strengthening the military through advanced equipment”

The merged China State Shipbuilding Corporation will undertake three major missions: “leading industry development, supporting national defense construction, and serving national strategic objectives.”