China state media says train makers merger "model" for other sectors
SHANGHAI Nov 12 (Reuters) - Chinese state-owned trainmakers China CNR and CSR Corp may merge their overseas units to create a single company focused on winning deals abroad, the official Shanghai Securities News reported on Wednesday.
Citing unnamed people familiar with the matter, the newspaper said the proposed merger could become a model for other state-owned firms at a time when regulators want to eliminate vicious competition between these companies for overseas deals.
Officials from CSR Corp and CNR Corp declined to comment on the report.
Shares in the two trainmakers have been suspended since Oct. 27 with state media citing merger discussions. In their latest stock market filings, both firms said they were planning a "significant event".
CSR and CNR have publicly clashed abroad while trying to sell trains, undermining the government's efforts to export its high speed rail technology. The government is also trying to reform bloated state-owned enterprises, which dominate the economy.
Last week, Mexico revoked a $3.75 billion high-speed rail contract from a consortium led by state-backed China Railway Construction Corp after its uncontested bid prompted an outcry from lawmakers.
Premier Li Keqiang asked Mexican President Enrique Pena Nieto at a meeting on Tuesday to "fairly" treat Chinese firms and said that the bid results was completely just and legitimate, according to the official Xinhua news agency. (Reporting by Brenda Goh; Editing by Miral Fahmy)
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