China's top trainmaker, China CSR Corp is planning to issue 11.14 billion new shares for the acquisition of CNR, which is approved by the China Securities Regulatory Commission.
CSR was founded in 2007. The company was listed on both the Shanghai and Hong Kong stock exchanges in 2008. CNR was founded a year later in 2008 and was listed in the Shanghai markets in 2009.
The approvals mean that the two firms' overseas projects will not be affected by the merger, according to the statement.
Propelled by China's increasing investment in railways and rising demand from abroad, the new company is likely to see fast profit growth in the future.
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