NINE listed subsidiaries of China’s two construction materials giants suspended trading yesterday, an indication the two state-owned groups are accelerating merger.
Five subsidiaries of China National Materials Group Corp (SINOMA) and two subsidiaries of China National Building Material Group Co halted trading on the mainland stock market. They will resume trading after the two groups “unveil some important issues.” The other two subsidiaries of the two groups on the Hong Kong stock market said they were waiting for details on the merger.
Although the companies didn’t unveil reasons for the trading suspension, China Securities Journal, quoting “some insiders” said they might be settling problems on integrating shareholders at the Hong Kong-listed subsidiaries.
Song Zhiping, chairman of CNBM, said in February the companies have started “deep integration” among their 15 listed subsidiaries.
CNBM is the world’s major non-metal materials manufacturer, with total assets of over 430 billion yuan (US$66 billion) last year. SINOMA is also a leader in the non-metal materials sector. A cement giant might be established if the two companies merge their subsidiaries as planned.
Their combined cement production capacity will total around 385 million tons a year, accounting for 22 percent of the nation’s total.