Power giant Huaneng Group is negotiating with China Cosco Shipping to sell in-house bulker owner Leading Energy Shipping (LES), also known as Ruining Shipping, sources briefed on the discussions say.

Talks are expected to be lengthy, but such a move, if it succeeds, would see one of China’s more commercially orientated state-controlled shipowners disappear into subsidiary China Cosco Bulk’s fleet of 272 vessels.