China's top trainmakers, China CNR (601299.SS)(6199.HK) and CSR Corp (601766.SS)(1766.HK), are planning to merge as the country aims to promote its high-speed train technology abroad, the China Securities Journal reported on Tuesday.
The state-owned firms halted trading on Monday and subsequently issued a statement saying they would resolve "major issues" as soon as possible. Trading would resume within five working days, they added.
The state-sponsored China Securities Journal said the firms had set up working groups to discuss the integration, and that investment bank China International Capital Corp had been appointed to oversee the reorganization.
"The heads of CNR and CSR are in agreement on the companies' integration," the newspaper quoted an industry source as saying
"As the State Council is in charge of this, it can be done at great speed and at the moment the biggest concern is related to their projects and personnel changes."
Representatives of CNR and CSR were not immediately available to comment on the Journal report.
Last month, CNR and CSR dismissed reports that the government was looking to merge the firms to create a giant that can better compete with foreign rivals.
Chinese financial news magazine Caixin has reported that Beijing is looking at a merger to facilitate exports of high-speed rail technology.
Zhuzhou CSR Times Electric (3898.HK), a CSR subsidiary, also suspended trading.
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