China Shipping Development Co (CSDC) has completed a share swap deal to welcome Wuhan Iron and Steel (Group) Corp as the second biggest shareholder of the state-owned shipping firm.

Wuhan has taken 4.17% stake in CSDC while the parent firm China Shipping Group (CSG) remains the controlling shareholder with 42.2%, down from 46.36%.

The deal was approved by the State-owned Assets Supervision and Adminstration Commission of the State Council.

The planned share swap was first announced in October this year.

Wuhan has been a major customer of CSDC, utilising the shipowner’s dry bulk carriers. The latest deal is expected to bring about larger volumes of long term contract of affreightment for the Chinese shipowner.