Shenhua Group, China’s biggest coal miner, and China Guodian, one of the nation’s largest coal-fired power generators, are in merger discussions, according to Bloomberg. The talks are preliminary and the merger may not go ahead, said people close to the matter, who asked not to be identified as the information isn’t public. The Hong Kong-listed units of the state-owned giants said Sunday they were notified by their parent companies of “significant” matters, while subsidiaries in Shanghai requested trading halts. Neither parent, which have combined assets of almost 1.82 trillion yuan ($267 billion), responded to requests for comment. A Shenhua-Guodian tie-up is the latest proposed combination in China’s power industry. 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 his government seeks to rebalance the $11 trillion economy toward more consumer spending.
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved