China Merchants to buy control of Shenzhen's Chiwan Container Terminal

SHENZHEN Chiwan Wharf Holdings Limited (SCWH), the majority shareholder in Shenzhen's Chiwan Container Terminal (CCT), has announced that its partner, China Nanshan Development Group, will authorise China Merchants Holding International (CMHI) to buy 57.52 per cent of the holding.

CMHI, the majority shareholder in China Nanshan Development Group, pledges to fully resolve the problem of horizontal competition between its subsidiaries via assets reorganisation in three to five years, according to Xinhua's report.

SCWH said the strategic move aims to further facilitate the integration and strengthen the synergy of Shenzhen's western port areas, cementing the way for further cooperation between Shenzhen and Hong Kong.

Before the authorisation takes effect, CMHI indirectly holds 66.1 per cent stake in CCT, with 57.52 per cent via China Nanshan Development Group and another 8.58 per cent via another company.

CMHI said its subsidiaries are in competition with CCT besides being rivals to Yantian and Dachan Bay. Such horizontal competition can be transformed to cooperation under the coordination of the CMHI to cope with the deterioration of shipping market.