Reuters reported that Chinese logistics giant Sinotrans has agreed to merge with China Yangtze Transportation.

Nanjing Tanker and Changjiang Phoenix 000520.SZ said in statements that the merger is still subject to approvals from China's state assets regulator and other related government departments.

According to the report, if the merger goes ahead the move would create a sprawling transport corporation operating everything from marine, oil and river shipping to express delivery, freight forwarding and warehousing, as Beijing spurs consolidation of a large but fragmented sector.

Analysts have said the deal would open opportunities for Sinotrans' listed units Sinotrans Ltd and Sinotrans Shipping Ltd to buy assets from their state parent in the future, though it was not expected to have an immediate impact on the listed firms.