- An executive from China Guodian Corporation recently announced that the company and Shenhua Group have submitted merger plans to the State Council, as reported by Cnstock.
- The newly merged company will become China’s largest power generator, with total assets of over RMB 1.8 trillion.
- National Energy Investment Group has been proposed as the name for the newly merged company.
Why It Matters:
- Shenhua Group is the world’s largest coal miner, and China Guodian Corporation is one of China’s largest power generation firms. Both the two groups are state-owned.
- In June, SGI reported the news that trading in the shares of China Guodian’s and Shenhua Group’s publicly traded units, namely, GD Power Development Co. (600795.SS) and China Shenhua Energy Co. (601088.SS/1088.HK), had been halted and there was speculation that China Guodian and Shenhua Group were in merger talks.
- As China has been accelerating the consolidation of state-owned enterprises (SOEs) and Shenhua Group is a leading state-owned coal mining firm, there have been high expectations of a merger. Previously, there were rumors of China Shenhua Energy and Datang International Power Generation (601991.SS) discussing a merger.