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When your competitors merge, it is a threat. But it could also be an advantage if it moves towards an oligopolistic-like situation.
Their Korean competitors started their own merger game first and have hit anti-trust roadblocks. It should probably not be a problem for the Chinese, I suppose.
Chinese state shipbuilders plan merger with eye on 'strong military'
Both companies said the top goal is to "further focus on major state strategy." That is a strong hint that the move is led and endorsed by the government.
"Promoting equipment for a strong military" was also mentioned as a priority. Both companies supply the Chinese armed forces, including the country's homegrown aircraft carriers. Other goals include pursuing "high-quality development" of their ship assembly businesses, limiting horizontal competition and enhancing the management quality of listed entities.
https://asia.nikkei.com/Business/Compani...g-military
Their Korean competitors started their own merger game first and have hit anti-trust roadblocks. It should probably not be a problem for the Chinese, I suppose.
Chinese state shipbuilders plan merger with eye on 'strong military'
Both companies said the top goal is to "further focus on major state strategy." That is a strong hint that the move is led and endorsed by the government.
"Promoting equipment for a strong military" was also mentioned as a priority. Both companies supply the Chinese armed forces, including the country's homegrown aircraft carriers. Other goals include pursuing "high-quality development" of their ship assembly businesses, limiting horizontal competition and enhancing the management quality of listed entities.
https://asia.nikkei.com/Business/Compani...g-military