Two of China’s biggest energy concerns plan on merging as Beijing pushes for reform and consolidation of the state-owned enterprise sector.
Speaking at the 11th China New Energy International Forum Guan Weizhu of China Guodian Group said that the energy giant had teamed up with Shenhua Group to submit a merger plan to China’s State Council
The provisional name of the proposed group is State Energy Investment Group (国家能源投资集团), and should the merger be approved it will be China’s single largest energy producer with a total installed capacity of 226,000 MWe.
The company would also possess total assets in excess of 1.8 trillion yuan, and a debt ratio of over 60%.
China Guodian is one of the five biggest power producers in China, with installed capacity capacity of over 100,000 MWe.
Shenhua Group is one of China’s leading mining and energy companies, overseeing vertically integrated coal and power generation operations.