China Merchants Energy Shipping (CMES) is poised to become the largest shareholder in Antong Holdings after announcing a strategic acquisition of up to 13.8% of the domestic container shipping firm. The move follows the recent collapse of a previously planned asset deal between the two state-backed players.

CMES will invest up to RMB1.8bn ($250 m) via its subsidiary Sinotrans Container Lines, using a combination of block trades, centralised bidding, and negotiated transfers to purchase 333.7m shares of Antong, equal to 7.89% of the company. When combined with shares held by affiliated parties—including China Merchants Port and multiple Sinotrans-linked tally and shipping firms—the total holding will reach 13.8%.

The investment marks a shift in CMES’ strategic approach following the abandoned June transaction that would have seen Antong acquire CMES’s container and car carrier subsidiaries. That deal, first floated in 2023, was scrapped due to disagreements over transaction terms and changing market conditions.

Sinotrans has outlined plans to increase its stake in Antong further over the coming year, with potential additional investments of up to RMB720m.