China to create power behemoth through Shenhua and China Goudian merger
President Xi Jinping’s governent is trying to cut industrial overcapacity and the number of SOEs
Hong Kong — China is creating the world’s largest power company. The merger of Shenhua Group, China’s biggest coal miner, with China Guodian, one of the country’s biggest power generators, has been approved, the state-owned Assets Supervision and Administration Commission said in a one-line statement posted online on Monday. The Shenhua-Guodian tie-up may be the first combination among reforms in China’s power industry. The government of President Xi Jinping is trying to cut industrial overcapacity and the number of state-owned enterprises — as well as the country’s reliance on coal — as it seeks to rebalance the $11-trillion economy toward more consumer spending. The new company would have total assets of more than 1.8-trillion yuan ($271bn) and would have the largest generating capacity in China, according to Bloomberg New Energy Finance. It would be the world’s second-largest company by revenue and world’s largest power company by installed capacity, according to BNEF. Shares of ...
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