China mulls creation of $241bn coal power giant

China mulls creation of $241bn coal power giant

China mulls creation of $241bn coal power giant
The Chinese government is directing a potential merger between China Datang and the country's biggestcoal producer, Shenhua Group.

According to Bloomberg, China's state-owned enterprise regulator has asked Shenhua and leading coal-fired power generator China Datang to discuss a merger.

If the merger goes ahead it will create a massive utility worth $241bn in terms of assets. Analysts say the deal would be positive for Datang as it would remove coal price risks from the equation.

The State-owned Assets Supervision and Administration Commission encouraged the discussions as the two businesses complement each other and a merger would be in line with China's supply-side reform policies, unnamed sources told Bloomberg.

A merger would build on President Xi Jinping's efforts to cut the nation's industrial overcapacity, accelerate the drive to overhaul its bloated state-owned sector and reduce its reliance on coal. China will speed up mergers and acquisitions of state-owned firms in coal, power, machinery and steel this year, Sasac vice-chairman Zhang Xiwu said in Beijing earlier this month.

"If successful, this may be a good model for China's coal and power industry reforms as a company with strong coal and coal-fired power assets could maintain reasonable profits in almost all circumstances," said Lin Boqiang, an adviser to the country's National Energy Administration and director of Xiamen University's China Center for Energy Economics Research.

Shenhua Group's power-generation capacity totalled 78.5 GW in 2015, while China Datang had 127.2 GW, according to their websites. A combined company would top power behemoth China Huaneng Group's 160.6 GW.

China Datang Corporation (CDT) is one of the five large-scaled power generation enterprises in the People's Republic of China, established on the basis of former State Power Corporation of China in 2002.
Related News
  • Powering Toward A Clean Energy Future

    Powering Toward A Clean Energy Future

    November 21, 2017A wind farm in Zhoushan, Zhejiang province. China's investment in clean energy in 2014 hit a record $89.5 billion, accounting for 29 percent of the world's total. Editor's note: The Communist Party of...view
  • Retractable Space Frame Roof System

    Retractable Space Frame Roof System

    November 23, 2017A retractable roof is a roof system designed to roll back the roof on tracks so that the interior of the facility is open to the outdoors. Retractable roofs are sometimes referred to as operable roofs...view
  • Going Green With Domes

    Going Green With Domes

    January 21, 2019Are open bulk storage yards a thing of the past? With an increasing need for environmental compliance, uncovered stockpiles need to be enclosed sooner rather than later. It's no surprise that mines, p...view
  • Spatial structure is a truss-like

    Spatial structure is a truss-like

    November 23, 2017In architecture and structural engineering, a spatial structure or space structure is a truss-like, lightweight rigid structure constructed from interlocking struts in a geometric pattern. Spatial str...view
  • Nigeria Salvation Ministries Cathedral Church Roof Project Kick Off Meeting was successfully conclud

    Nigeria Salvation Ministries Cathedral Church Roof Project Kick Off Meeting was successfully conclud

    April 19, 2018On April 10th,2018, Salvation Ministries OPMT and BV team come to our company to visit the factory where space frame structure produced and have the kickoff meeting of the “The hand of god” cathedra...view
  • Stadium Set to Kick off New Phase of Ties

    Stadium Set to Kick off New Phase of Ties

    December 26, 2017A world-class sports stadium being built by China in the south of Moroni, the capital of the island state of Comoros, will be ready for use next year.China IPPR International Engineering Co won the bi...view
  • TEL:+86 516 8595 0258
  • FAX:+86 516 8595 0278
  • Email:marketing01@cnxzlf.com
  • ADDRESS:222, Block B, Diamond International, Guozhuang Road, Xuzhou, Jiangsu, China


Total quantity:776, Total process time:0.21790886 ms


Total quantity:22

Use Memory: 11.7MB

Time-consuming: 0.36987 ms