CSR Corporation and China CNR Corporation agreed to merge into a new company, according to a CSR Corp. announcement filed with the Shanghai Stock Exchange. CSR proposes to merge with CNR by way of absorption and a share for share exchange. The merger will take place in the form of the CNR to be merged into the CSR through a stock swap agreement between the two companies, 1 CNR Corp. share for 1.1 shares to be issued by the CSR. Corp.
Upon completion, the new company will be renamed CRRC Corporation Ltd. Through the merger, CSR and CNR propose to build jointly a brand-new, multinational world-leading supplier of high-end equipment and systems solutions with rolling stock at its core. The merger is expected to improve efficiency in the use of resources, effectively reduce operating costs and realize the internationalization strategy, thereby promoting competition globally, the statement said.
In 2013, CNR and CSR together generated sales of 195.1 billion yuan (USD 31.7 billion).
Photo: Liu Changlo