The Guodian Group and Shenhua Group, two leading state-owned power and energy companies, have merged into a new company called China Energy Investment Corporation administrated by the State-owned Assets Supervision and Administration Commission (SASAC), China Securities Journal reported.
By the end of June this year, the total assets of Guodian Group exceeded 800 billion yuan (US$120.45 billion), while Shenhua Group had more than 1 trillion yuan in assets.
It means the new company’s total asset base could exceed 1.8 trillion yuan — right after State Grid, PetroChina and Sinopec.
The new company has already secured a US$83.7 billion deal with the Government of West Virginia in shale gas exploration, which was the largest single deal during U.S. President Donald Trump’s visit to China earlier.
Insiders think the merger and reconstruction will be an example for state-owned enterprises reform.