As Chinese divestments trickle along, Longhe Ship Management (Hong Kong), the ship management arm of Qingdao Zhenghe Shipping, will be acquired by international shipping agency and logistic services provider Sino-Global Shipping America, the company said in a press release.

The two companies announced that they had signed a non-binding acquisition proposal.

Hong Kong-incorporated Longhe Ship Management provides ship and crew management services for a number of dry bulk ships that are built and owned by Zhenghe. However, the exact terms and conditions of the planned acquisition have not been determined and are subject to further negotiation between the two parties as well as review and approval of Sino-Global’s board, the announcement said.

Qingdao Zhenghe Shipping is a diversified vertically integrated shipping and transportation company with businesses including shipbuilding and repair, ship leasing, fleet management, port management, domestic and international shipping (dry bulk carriers, container ships), shipping agency, and logistic services, centred around its base in Qingdao.US-based Sino-Global Shipping America has a shipping agency, shipping and chartering, and inland transportation management services. Its markets include China, Australia, South Africa, Brazil, New Zealand, and Canada.