CSSC buys Hudong Heavy

China State Shipbuilding Corp (CSSC) will take direct control of Shanghai-listed Hudong Heavy Machinery before its planned $800 million IPO on the Hong Kong Stock Exchange next year, according to local reports.

Hudong Machinery, which has a 60% market share in Chinese production of low-speed diesel engines for ships, said its two largest shareholders will transfer their combined 53.27% stake to their parent, State Shipbuilding. According to Hudong Machinery, the deal has already won approval from the China Securities Regulatory Commission (CSRC) and the State-owned Assets Supervision and Administration Commission.