China Merchants Energy Shipping becomes largest shareholder

China Merchants Energy Shipping (CMES) is set to become the largest shareholder of Antong Holdings, following a strategic acquisition of up to 13.8% of the domestic container shipping company. This development comes after a previous asset deal between the two state-backed firms fell through. CMES plans to invest approximately RMB1.8 billion ($250 million) through its subsidiary, Sinotrans Container Lines, to secure a significant shareholding in Antong.

Details of the Acquisition

CMES will acquire 333.7 million shares of Antong, which represents 7.89% of the company, through a mix of block trades, centralized bidding, and negotiated transfers. When combined with shares held by affiliated entities, including China Merchants Port and various Sinotrans-linked shipping firms, CMES’s total stake will rise to 13.8%. This strategic investment marks a notable shift in CMES’s approach, particularly after the collapse of a planned transaction in June that would have seen Antong take over CMES’s container and car carrier subsidiaries. The initial deal, proposed in 2023, was abandoned due to disagreements over terms and evolving market conditions.

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Looking ahead, Sinotrans has expressed intentions to further increase its stake in Antong over the next year, with potential additional investments of up to RMB720 million. This move indicates a strong commitment to expanding their influence in the domestic shipping sector, despite the challenges faced in previous negotiations. The acquisition is expected to enhance CMES’s operational capabilities and strengthen its position in the competitive shipping market.