Caixin
Sep 25, 2017 04:18 PM
M&A

Will Merged Coal, Power Giants Live Happily Ever After?

Analysts say that the new conglomerate that will be created by the merger of coal-mining company Shenhua Group Corp. Ltd. and power generator China Guodian Corp. will be the world's biggest power producer. Above, the China Guodian power plant in Jiujiang, Jiangxi province, is seen on March 11. Photo: Visual China
Analysts say that the new conglomerate that will be created by the merger of coal-mining company Shenhua Group Corp. Ltd. and power generator China Guodian Corp. will be the world's biggest power producer. Above, the China Guodian power plant in Jiujiang, Jiangxi province, is seen on March 11. Photo: Visual China

A government-approved plan to merge two energy giants and create the world’s largest electric power company is winning praise from supply-side reformists but drawing concern from analysts who fear what they believe is a marriage of unequals.

The groundwork for the merger was laid last month when the State Council, China’s cabinet, sealed the tie-up between coal-mining company Shenhua Group Corp. Ltd. and power generator China Guodian Corp.

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