Full steam ahead

Hong Kong government announces the merger of its two train operators, subject to the approval of MTR CorpÆs minority shareholders.

In a welcome display of transparency and decisiveness, the government of Hong Kong yesterday announced that its two rail operators would start merger negotiations. As the government owns 76% of MTR Corp and 100% of KCRC, it alone could force the two warring sides to start talking to each other. However, sources close to the deal say that any eventual deal will only go ahead if MTR Corp's minority shareholders approve it.

We have examined carefully the pros and cons of a proposed merger. We believe that a merger of the two railway corporations could bring synergies and more effective utilisation of resources for the two corporations, a government spokesman said. We...

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