China creates 0-billion energy conglomerate by SOE merger

Updated 2017-11-29 09:33:55 Xinhua
The founding ceremony of China Energy Corporation is held in Beijing, capital of China, Nov. 28, 2017. (Xinhua)

The founding ceremony of China Energy Corporation is held in Beijing, capital of China, Nov. 28, 2017. (Xinhua)

Two Chinese state-owned enterprises (SOEs) have merged into an energy conglomerate with total assets worth 1.8 trillion yuan (272.96 billion U.S. dollars).

The new company, China Energy Corporation, has become the world's largest in coal mining, thermal power, renewable energy and coal-to-liquid conversion, according to the founding ceremony held Tuesday.

It was formed by the reorganization of power generator China Guodian Corporation and coal miner Shenhua Group.

"It is the biggest consolidation among central SOEs in recent years," said Xiao Yaqing, chairman of the State-owned Assets Supervision and Administration Commission.

Xiao expects the deal to improve corporate profitability and help coordinate coal and electricity markets.

The merger is in line with the country's effort to push restructuring in state-owned companies. During the past five years, 34 central SOEs were reorganized to improve competitiveness, according to Xiao.

The total number of central SOEs has halved from 196 in 2003.

Qiao Baoping, chairman of China Energy, said the company would focus on coal mining and power generation, while making more effort to eliminate excess capacity, and speed up its drive to go global.

China Energy signed a memorandum of understanding with the government of West Virginia to cooperate on shale gas exploration at the beginning of the month. The deal, with total investment to reach 83.7 billion U.S. dollars in 20 years, will be the largest ever energy cooperation deal between China and the United States.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58February 25 2018 06:08:37

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16February 25 2018 06:08:37

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18February 25 2018 06:08:37

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords