China to create world's biggest power company
Move is part of govt plan to cut industrial overcapacity, accelerate overhaul of state-owned enterprises
Tokyo
CHINA'S move to create the world's biggest power company is expected to be the first such government-managed mega-merger by the largest energy consumer.
The newly created China Energy Investment Corp - a combination of Shenhua Group Corp, the nation's largest coal miner, and China Guodian Corp, one of its top-five power generators - may be the first of multiple consolidations, which Wood Mackenzie Ltd estimated would include almost US$1 trillion in assets. "The Shenhua-Guodian merger is just the beginning of a wave of massive consolidations in China's energy sector," said Frank Yu, a Beijing-based analyst at Wood Mackenzie. "The landscape of major power utilities could be fundamentally reshuffled."
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
India's Vedanta misses Q4 profit estimates on lower prices
BHP targets Anglo American in bid valuing miner at US$39 billion
China's Sinopec charts global expansion with refinery in rival India's backyard
Gold trades in tight range as market focuses on US economic data
Oil settles lower as US business activity cools, concerns over Middle East ease
Orsted says Taiwan wind project to power TSMC on track for 2025 finish