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China merging state-owned energy giants

Posted August 28

— 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.

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