Qingdao Port to Take Control of Weihai Port
- Business & Finance
Qingdao Port International is soon to take control of the Weihai Port as the State-owned Assets Supervision and Administration Commission (SASAC) arranged a merger deal between the parties.
Namely, the Qingdao SASAC notified the company on July 9 of the deal through which Weihai Port Group would transfer its 100 percent stake in the Weihai Port to Qingdao Port International.
The arrangement is subject to the approval from the State Administration for Market Regulation on the declaration of concentration of business undertakings.
Upon the completion of the transfer, Weihai Port will become a wholly-owned subsidiary of Qingdao Port.
The company said that the two ports have similar businesses, that include stevedoring of cargoes such as container, metal ore, coal and other cargoes and the ancillary services, logistics and port value-added services, port ancillary services, finance lease services and the transport services of shipping lines for passengers and ro-ros.
Although there is horizontal competition in the principal businesses between the parties, the scale of Weihai Port is relatively smaller as compared to that of Qingdao Port, therefore the competition on the principal businesses is limited.