(Yicai Global) July 15 -- China's biggest food supplier Cofco Corp. will merge with Chinatex Corp., making the textile and grains trading group a wholly owned subsidiary, the state assets supervisor said, in another step forward in China's ongoing reforms to its state sector.
After the merger Cofco will no longer be supervised by the State-Owned Assets Supervision and Administration Commission, the commission said on its website.
China's government is accelerating the restructuring of SOEs by cutting their number. When the SASAC was set up in 2003, it had 196 companies under its supervision, compared with 104 now. The SASAC said yesterday that it will reduce the number of central SOEs to less than 100 within this year.
Chinatex's core business is textiles, oil and grains. It had revenue of CNY50,488 million in 2014, up 7.9 percent year-on-year. Chinatex has not disclosed its income for last year.
Cofco is a leading central SOE principally engaged in the production, processing, imports and exports of oil and grains. It ranked 272th on the Fortune 500 list of the world's biggest companies last year, and it has four Hong Kong-listed companies and three A-share listed firms.