SHANGHAI, Dec 6 (Reuters) - A proposed takeover of China National Materials (Sinoma) by China National Building Material Co (CNBM) as part of a government plan to streamline giant state firms has been approved by shareholders of the two firms, the companies said on Wednesday.
The two listed firms agreed to combine in September as part of a wider amalgamation of their biggest shareholders, central-government run companies China National Building Material Group and China National Materials Group.
China’s state enterprise regulator, the State-Owned Asset Supervision and Administration Commission (SASAC), gave the go-ahead for the merger of the two listed units last month. CNBM will continue to trade on the Hong Kong stock exchange, while Sinoma will be delisted.
The deal involving the top shareholders was announced last year and involved total assets of 500 billion yuan ($75.60 billion). The restructuring was part of a government programme to rejuvenate its struggling state sector and end what it called “duplication” in strategic industries.
The two shareholders had been struggling with severe overcapacity and plunging cement prices.
China is aiming to slash the number of firms under the direct administration of the central government by forcing through mergers in major industrial sectors.
It has cut the number of central government enterprises to 98, half the number when SASAC was first established in 2003. ($1 = 6.6136 yuan) (Reporting by David Stanway; Editing by Muralikumar Anantharaman)