The government that merged the two railways reached an understanding with the subway.

On April 1 1, 2006, the government and MTRC reached an understanding on the merger of the two railways. The Executive Council also endorsed the merger plan of the two railways and signed a memorandum of understanding on the proposed merger plan to start the merger arrangement of the two railways. However, it still needs the approval of the Legislative Council and the minority shareholders of MTR before it can be formally merged. At that time, it was announced that it would take a year and a half or even longer. MTRC will pay KCRC a lump sum of US$ 4.25 billion (HK$), obtain the service management right of KCRC railway network for 50 years (including local and cross-border transportation services), and purchase some railway assets of KCRC, but some railway assets will continue to be held by KCRC.

The Chinese name of MTRC will be changed to MTR Corporation Limited [5], but the English name (MTR Corporation Limited) will be retained. Both railway companies have been retained. Adjust the public transport service structure. Using Octopus to pay adult fares can be reduced by at least 20 cents, related transfer fees can be cancelled, and medium and long-distance fares can be reduced by more than half and 10%.

Within two years after the merger, the structure of bus services will not be adjusted, and an increase and decrease mechanism will be introduced so that fares can be adjusted according to the price index and wage index. Demolition and/or reorganization of the gates (including Kowloon Tong Station, mei foo station Station and Nanchang Station) that the two railways pass when interchange at the same station, and cancellation of the interchange fees, so as to facilitate passengers to interchange.

The details of the Shatin-Central Link will be worked out as soon as possible, and there will be no need to pay the transfer fee and provide an integrated transfer station. This will reduce competition, but it will benefit passengers.