Chinese state shipbuilders plan merger with eye on 'strong military'

HONG KONG -- Two listed Chinese state-owned shipbuilders announced Monday that they are preparing for a merger, a move that could end competition between them and help them better serve the military, while dealing with global vessel shortages.

In separate but virtually identical filings to the Shanghai Stock Exchange on Monday night, China CSSC Holdings and China Shipbuilding Industry (CSICL) said they had signed an agreement of intent to merge earlier that day. Trading of their shares was suspended Tuesday to avoid irregular movements while they arrange the deal, with the halt expected to last no more than 10 trading days.