THE government has approved the merger of the two biggest shipping conglomerates, China Ocean Shipping (Group) Co. (COSCO) and China Shipping Group Co., in its latest effort to make the industry more competitive globally.

    The combined entity would become the world’s fourth-largest container shipper, with a market share of roughly 8.1 percent. That would be far behind AP Moeller-Maersk A/S, Mediterranean Shipping Co. and CMA CGM SA.

    Denmark’s Maersk warned last month that global demand for container transportation this year would grow at a slower pace than previously expected.

    COSCO and China Shipping Group will consolidate operations, the State-owned Assets Supervision and Administration Commission said in a statement on its website Friday. Four listed entities will be formed, each focusing on an aspect of the shipping business: containers, financing, terminals, oil and gas, according to Xinhua.

    The moves extend China’s overhaul of inefficient State-run companies to bolster an economy headed for its slowest growth in 25 years. The plan seeks to shrink industries plagued by overcapacity while creating globally competitive businesses in high-value fields such as aerospace and advanced rail technology.

    Two of COSCO’s units — China COSCO Holdings and COSCO Pacific Ltd. — will restart trading today in Hong Kong, along with China Shipping Group’s unit China Shipping Development Co. All were suspended for four months.

    In Shanghai, a suspension remains in effect for China COSCO, China Shipping Development and China Shipping Group’s China Shipping Container Lines pending a review of the restructuring by the Shanghai Stock Exchange. (SD-Agencies)