SHANGHAI – Two Chinese state-owned companies have merged to form the world’s largest conglomerate dealing in coal mining, thermal power, renewable energy, and coal-to-liquid conversion, official news agency Xinhua reported on Tuesday.
The new company, China Energy Corporation, has total assets worth 1.8 trillion yuan ($272.96 billion) after the merger between China Guodian Corporation and Shenhua Group.
According to Chairman of the State-owned Assets Supervision and Administration Commission, Xiao Yaqing, this is the “biggest consolidation among central SOEs (state-owned enterprises) in recent years.”
Following the merger, this agreement is expected to improve corporate profitability and help coordinate national coal and electricity markets.
According to Xinhua, the merger is in line with Beijing’s efforts to promote the restructuring of the crucial sector of state-owned enterprises.
Over the last five years, 34 central state-owned enterprises have been restructured to improve competitiveness.
The total number of central state enterprises has fallen to half of the 196 that existed in 2003.