China Merchants Energy Shipping (CMES) has decided to carry out a 6.57 billion Chinese yuan ($952 million) asset acquisition which includes equity in five Arctic LNG carriers.
Under the deal, CMES is set to acquire Sinotrans Shipping’s dry bulkers as well as equity of the Yamal LNG transportation project, which is seen as a solution for the competition between the two companies, the company said in its statement.
The fleet to be integrated includes nine Capesize bulk carriers, 11 Panamax bulkers, 21 handysize bulkers and 25.5 percent equity interest in five Yamal LNG carriers as well as Sinotrans Ship Management.
CMES further said that following the completion of the deal it will have entered the grain transportation business based on the Panamax vessels.
The acquisition follows a merger between CMES and its compatriot Sinotrans &CSC Holdings carried out in 2017.