China merging state-owned energy giants
Posted August 28
BEIJING — China's government says it will merge two of its biggest coal and power companies amid a campaign to make state industry that dominates the economy more efficient and profitable.
The merger announced Monday will bring together Guodian Group, a utility operator with interests in coal, with Shenhua Group, the world's biggest coal producer.
Beijing is in the midst of a marathon campaign to make state companies that dominate industries including coal, power, steel and chemicals more efficient through mergers.
The government also is trying to shrink a bloated Chinese coal industry and shrink a supply glut that has depressed prices, but Monday's announcement gave no indication whether Guodian and Shenhua plan to reduce production.