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China’s Two Largest Trainmakers Plan to Merge in Share Swap
China’s two biggest trainmakers said they plan to combine through a share swap, a move intended to boost exports of the country’s high-speed rail technology. The merger between China CNR Corp. (6199) and CSR Corp. (1766) will be at a ratio of 1.1 CSR share for every CNR share, the companies said in a joint statement today. The conversion price for CNR is equal to 6.19 yuan per share or HK$8.05 for its Hong Kong-listed shares, they said in a filing to the Shanghai exchange. The proposal to combine the two trainmakers comes as competitors such as Germany’s Siemens AG and France’s Alstom SA (ALO) are facing constrained public spending in developed markets. China is competing aggressively for overseas rail projects, targeting emerging markets in Africa, Eastern Europe, Latin America and Southeast Asia while also pitching for high-profile projects in the developed world. Chinese Premier Li Keqiang has touted the country’s rail engineering and construction companies on overseas trips, sig
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