China's two railway vehicle manufacturers, CNR Corp and CSR Corp, announced on Tuesday that they will merge into one conglomerate.

The merger comes after two months of government review and preparation, officially ending an era in which the companies often cut into each other's profit in the global market.

Wang Mengshu, an academic at the Chinese Academy of Engineering and an ardent supporter of the move, said the domestic market for high-speed trains is quite saturated, so the merger will prevent unhealthy price competition in the world market.