The Chinese authorities approved a merger between coal producing company Shenhua Group and one of China’s largest power producers China Guodian Corporation.
According to experts at Wood Mackenzie, the combined entity will become the world’s biggest energy producer by capacity (over 225 gigawatts). The company will also be among the leaders of wind power development with 33 gigawatts of capacity and will become the largest coal producer. The total asset value is estimated at $236 billion.
China’s government has been actively consolidating public enterprises since 2015 in hope of creating giant conglomerates competitive enough for the global market. During the recent two years, 15 similar mergers took place and the number of public companies dropped to 103. The count can soon fall to about 40.
Besides, China plans to merge eight energy producers into three large conglomerates.
