China train makers CSR, CNR confirm plan to merge

Sources with China's top train makers, China CNR Corp. Limited and CSR Corp. Limited, confirmed on Tuesday that the two companies will soon merge to compete globally.

Details of the merger will be available this weekend with the release of "important news" by the state-owned enterprises, according to sources familiar with the deal.

The expected merger will help export China's high-speed railway technologies by preventing cutthroat competition between the two, analysts said.

Stock trading for the two companies has been suspended in Shanghai and Hong Kong stock exchanges, pending further announcement.

The two companies are both listed in Shanghai and Hong Kong, with a combined market value of about 30 billion U.S. dollars based on the closing price before trading suspension.

CNR's net profit jumped 65.1 percent year on year to reach 3.96 billion yuan (645 million U.S. dollars) for the first nine months, according to its latest quarterly results filed with Shanghai and Hong Kong stock exchanges on Tuesday.

CNR attributed the sharp increase in profit to the expansion of business scale.

In the January-September period, CNR's operating revenues climbed 9.84 percent from a year ago to 64.2 billion yuan.

CSR, China's largest train maker by market value, has yet to disclose its latest quarterly financial statement.