Dalian Port announced on June 19 that the company were planning to merge Yingkou Port and to raise supporting funds by issuing A-shares to all shareholders of Yingkou Port.
Trading of the company was suspended from June 22. On the evening of June 19, Yingkou Port also disclosed the news.
It should be noted that both Dalian Port and Yingkou Port are actually controlled by China Merchants Group.
In 2019, port integration in Liaoning Province was steadily promoted, which improved port bargaining power to a certain extent, and promoted price coordination among ports.
The economic growth in Northeast China is slow, the industry is not strong, and there is no effective support for port development. The integration and acceleration of ports around the Bohai Bay make the external competition more and more fierce.
As for the merger of Yingkou Port proposed by Dalian Port, on the one hand, it may solve the problem of horizontal competition; On the other hand, it will further increase the synergies between the two ports and improve the comprehensive competitiveness.
Source: Sarah Yu, XINDE MARINE NEWS
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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