The combined entity would become the world's fourth-largest container shipper, with a market share of roughly 8.1 percent. That would be far behind AP Moeller-Maersk A/S, Mediterranean Shipping Co SA and CMA CGM SA.

"With the approval of the State Council, COSCO and China Shipping will be restructured," the state asset supervisor said on its website on Friday, using a phrase commonly understood to refer to the merger. It gave no other details.

A listed unit of China Shipping, China Shipping Network Technology Co. Ltd, said the merger will focus on freight transport, container shipping, and oil transport services, in a stock exchange filing.

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