Sinotrans and Yangtze agree on logistics merger

Chinese logistics giant Sinotrans has agreed to merge with China Yangtze Transportation (Group) Corp, the listed units of the two companies said on Wednesday.

The merger is still subject to approvals from China's state assets regulator and other related government departments, Nanjing Tanker (600087.SS: Quote, Profile, Research) and Changjiang Phoenix (000520.SZ: Quote, Profile, Research) said in statements published in the China Securities Journal.

If it goes ahead, the move would create a sprawling transport corporation operating everything from marine, oil and river shipping to express delivery, freight forwarding and warehousing, as Beijing spurs consolidation of a large but fragmented sector.

Analysts have said the deal would open opportunities for Sinotrans' listed units -- Sinotrans Ltd (0598.HK: Quote, Profile, Research) and Sinotrans Shipping Ltd (0368.HK: Quote, Profile, Research) -- to buy assets from their state parent in the future, though it was not expected to have an immediate impact on the listed firms. (Reporting by Alfred Cang; editing by Ken Wills)