CHINA’S State-owned trainmakers China CNR Corp. and CSR Corp. may merge their overseas units to create a single company focused on winning deals abroad, Shanghai Securities News reported yesterday.

    Citing unnamed people familiar with the matter, the newspaper said the proposed merger could become a model for other State-owned firms at a time when regulators want to eliminate vicious competition between these companies for overseas deals.

    Officials from CSR Corp. and CNR Corp. declined to comment on the report yesterday.

    Shares in the two trainmakers have been suspended since Oct. 27 with domestic media citing merger discussions. In their latest stock market filings, both firms said they were planning a “significant event.”

    CSR and CNR have publicly clashed abroad while trying to sell trains, undermining the government’s efforts to export its high speed rail technology. The government is also trying to reform bloated State-owned enterprises, which dominate the economy.

    Last week, Mexico revoked a US$3.75 billion high-speed rail contract from a consortium led by State-backed China Railway Construction Corp. after its uncontested bid prompted an outcry from lawmakers. (SD-Agencies)