The merger talks between the Kowloon-Canton Railway Corp. (KCRC) and the Mass Transit Railway Corp. (MTRC) entered the final stage, the secretary for Financial Services and the Treasury of Hong Kong said Monday.

Frederick Ma said the merger discussions on the two major railway corporations are close to an end but some crucial issues including financial arrangements have yet to be settled.

Speaking on a radio talk show Monday morning, Ma said the merger talks cover many areas including staff deployment, financial implications, and transport arrangements.

Noting many principal and technical problems are almost solved, the secretary said the discussions on certain issues such as financial arrangements are still underway.

The feud in the management of KCRC has drawn much attention in the city since the development of the crisis was full of dramatic turns and finally led to the merger of two railways.

On the recent disagreement between the KCRC's chairman and chief executive, Ma said the incident could have been avoided, adding there was something wrong with the management's communication.

Source: Xinhua