CHINA’S top two trainmakers said yesterday that they will merge, creating a US$26 billion company able to compete with the likes of Siemens and Bombardier for global rail deals.

    Domestic media reported in October that China CNR and CSR Corp. were in merger talks.

    A joining of the firms, which have so far competed against each other to sell trains abroad, will help solidify China’s campaign to sell its high-speed technology abroad.

    Under the deal, CSR will issue shares to CNR’s shareholders, with a swap ratio of one CNR share for 1.1 CSR share.

    “A merged new firm will further improve product mix, enhance technological strength and optimize global resource allocation,” the firms said.

    The new firm would have a combined annual revenue of about 200 billion yuan (US$32.71 billion) based on 2013 company data, compared with Siemens’ 75.9 billion euros (US$96.5 billion) in revenue last year and Bombardier’s US$18.2 billion.

    CNR and CSR, already the world’s largest trainmakers thanks to robust domestic sales, halted trading Oct. 27 and issued statements saying they would resolve “major issues” soon.

    Trading in both firms restarted yesterday and both companies surged their daily 10 percent limit. (SD-Agencies)