Hong Kong-listed Sinotrans Shipping has announced it has been informed by its parent, Sinotrans & CSC, that the strategic reorganization between China Merchants Group and Sinotrans & CSC has been completed.

Sinotrans & CSC has officially become a wholly-owned subsidiary of China Merchants while Sinotrans Shipping has become a listed subsidiary of China Merchants.

The merger aims to create economies of sale and synergies between the two groups in various sectors including shipping, logistics, energy, port and marine and offshore engineering.