Chinese train manufacturers CSR and CNR in $26 billion merger

Overview:

• Chinese train manufacturers China North Locomotive and Rolling Stock Industry Corporation (CNR) and China South Locomotive and Rolling Stock Industry Corporation (CSR) have undertaken a merger to create the world's largest train conglomerate.
• The combined entity, renamed China Railway Rolling Stock Corporation, has an estimated market capitilisation of $113 billion.
• The deal saw CSR issue shares to CNR's shareholders with a swap ratio of 1.1 CNR share for each CSR share.
• Linklaters and Allen & Gledhill took the lead for the two companies.