China's two major train makers  are having a series of talks on the possible merger that will enable them to compete globally with top train makers abroad.

China state media said the ongoing talks on a merger between China CSR and CSR Corp aim to transform the train makers into a giant that can compete with the likes of Siemens of Germany and Canada's Bombardier,  the top selling train manufacturers worldwide.

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Xinhua said China has long expressed its desire to export its train-making technology but the two companies have turned into bitter rivals, fiercely competing against each other while trying to export their trains internationally.

Unconfirmed reports said the two train companies have formed working groups to discuss the integration and that China International Capital  Corp. has been appointed to oversee the merger.

Reports from the China Securities Journal said the heads of the CNR and CSR companies are in agreement about the integration.

CNR and CSR halted their trading last Monday and issued a statement that both companies will resolve major issue as soon as possible. They said that trading will resume within five working days.

The two train makers dismissed the reports last month from a financial news magazine, Caixin, that the government is eyeing a merger of the two companies to create a giant and compete globally.

Financial analysts said the  merger of  CNR and CSR would have combined annual revenue of about 200 billion yuan (US$32.71 billion). as based on 2013 company data, compared with Siemens' 75.9 billion euros ($96.5 billion) revenue last year and Bombadier's $18.2 billion.

Xinhua news agency, quoting railway expert Wang Mengshu, said that a merger would help reduce the unhealthy competition between the two companies and help  promote and export China's high-speed rail products  and technology.

The trainmakers split from the government in 2000 to promote competition and have profited immensely in railing the country.

But the two companies engaged in a fierce competition in their sales abroad as they fought a price war for a Turkish contract in 2012.

The Turkish government gave the contract to a South Korean firm.

The two companies again clashed over a contract to supply trains to Argentina, with the then Ministry of Railways openly criticizing the firms.

TagsCNR, CSR, trains, talks