China National Building Materials Group Corp (CNBM) will take over smaller rival China National Materials Corp (Sinoma), after an agreement between the two companies was approved by the government, the country’s state assets regulator said.
The deal is part of an ambitious plan by China under president Xi Jinping’s leadership to revamp its lumbering and debt-ridden state sector, with the goal of creating globally competitive multinationals through mergers, asset swaps and sweeping management reforms.
