AVIC I and AVIC II, currently the two largest aircraft makers in China, are likely to merge in the wake of the news that China’s first jumbo jet firm will be officially incorporated in Shanghai on May 11, the Shanghai Securities News reported. The possible merger has been rumored for a long time. Previous reports said that a detailed merger plan would be unveiled around June and that the company will have subsidiaries responsible for aero-engines and equipment, helicopters, small aircraft and large aircraft. The new US$2.72 billion (RMB19 billion) jumbo jet firm includes an US$858.72 million (RMB6 billion) and US$715.60 million (RMB5 billion) from the Shanghai government, which will be the plane makers second largest investor. AVIC I will invest US$572.48 million (RMB4 billion) in cash and production assets, while AVIC II, Baosteel, Chinalco and Sinochem Co will each invest US$143.12 million (RMB1 billion) in cash.