The two largest Chinese state-owned train makers CSR Corp and China CNR Corp are reportedly in merger talks that would create a new mega-company to compete in overseas markets with German, Canadian, and Japanese locomotive makers.
Details of the merger remain unclear, but a draft plan is in the works, both Bloomberg and Chinese media report, citing government officials. Together, the two companies have a market value of $26 billion.
A “major” announcement is expected within a week.
The merger would be aimed at reducing overseas competition between the two companies, which in turn should help them win more contracts and fulfill China’s hungry appetite to export transport hardware.