Although the details of a merger involving China's two foremost bullet-train companies--China CNR Corp and CSR Corp--are still unclear, the deal is expected to create a "multi-billion-dollar firm" according to the Bangkok Post.
The deal was confirmed on Dec. 31, Wednesday, after CSR Corp filed a document with the Shanghai Stock Exchange on the previous day.
The deal is part of a national goal to export China's domestic expertise in areas such as high-speed rail technologies. The intent behind this week's merger emerged during the talks between Premier Li Keqiang and Prime Minister Prayut Chan-o-cha in December. The two leaders met in Bangkok, Thailand, and the China Railway Corp was confirmed as the firm responsible for the construction of a multi-billion-dollar Thai railway project. The China Railway Corp is the main customer of both China CNR Corp and CSR Corp.
The talks between the two companies, which are both state-owned, were first publicized in October, and the merger notion has since been a subject of speculation for numerous months. Although the pair were in intensive competition against each other prior to the merger discussion, they have both risen to become the world's two largest trainmakers due to strong sales within China.
Under the two companies, the world's longest high-speed train network was constructed in China in under 10 years. However, during their existence, China CNR Corp and CSR Corp have constantly tried to outdo each other to secure lucrative overseas contracts.
Now as a combined entity, the Chinese corporation presents a formidable opponent for major rail players such as German Siemens and Canadian Bombardier.