CHNENERGY and China Guodian enters into merger agreement

sxcoal.com Policy,  Viewpoint,  Company 2018-02-06 15:44:00

China Guodian Corp and China Energy Investment Corp ("CHNENERGY") have signed a merger agreement on February 5, said CHNENERGY's listed subsidiary China Shenhua Energy in an announcement on the same day.


The merger is subject to the compliance with relevant procedural requirements and the receipt of necessary approvals, authorizations and permission from competent regulatory authorities. After the merger, CHNENERGY will continue to be the controlling shareholder of Shenhua Energy, the company said.


In the meantime, GD Power Development Co., Ltd., a Shanghai-listed arm of Guodian Corp said its actual controlling shareholder will be CHNENERGY instead of Guodian and final controlling shareholder will be SASAC (State-owned Assets Supervision and Administration Commission of the State Council).


According to the announcement China Shenhua Energy issued on November 27, CHNENERGY completed industrial and commercial registration of changes. CHNENERGY will be the parent company after the merger with Guodian by way of absorption, which has been passed by the company's board resolution on January 4.


After the merger, CHNENERGY will be the largest coal miner and power generator in the country.


On September 1, GD Power and China Shenhua Energy reinstated trading in Shanghai Stock Exchange and limited up on the same day. However, the two stocks have since then parted their ways.


With coal prices soaring in recent two years, most listed coal companies have swung to profit while power companies were seen struggling in great losses.


China Shenhua Energy exported its net profit to reach 45.2 billion yuan in 2017, a 99% increase from a year ago; while GD Power said its full-year net profit will be at 1.8-2.3 billion yuan, tumbling 49.66-60.60%.


In face of increasing contradiction between coal and thermal power industries, merger and acquisition is considered to be one of best solutions. The marriage of Shenhua Group and Guodian Group has been widely thought worth of emulation.


(Writing by Alex Guo  Editing by Tammy Yang)
For any questions, please contact us by inqury@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editors Recommendations

1 China Coal Daily Track (Aug 15) 2018-08-15

Thermal coal Domestic market Production area Mixed price trends were seen at major production areas in Shaanxi province. Some miners at Fugu county raised coal prices as smooth sales wit

2 China's Jiangsu to forge two steel industry clusters for efficiency 2018-08-15

Eastern China's Jiangsu province plans to lay out two steel industry clusters along the coast in next few years through methods of shutdown and relocation, the provincial government said in a document

3 China's Jul coal import surges 49%, backed by sizzling weather or de-capacity reform? 2018-08-15

China's national statistics body released energy supply data for July on August 14, showing China's coal imports skyrocketed 49.1% on the year to 29.01 million tonnes in the month, reaching the highes

4 China's import coal market still sees sparse deals on lukewarm demand 2018-08-15

Sparse deals were reached in China's import thermal coal market, as domestic coal-fired power plants still showed lukewarm demand for the fuel and unfavorable factors like import quota restriction and

5 China spot thermal coal price further advances, beating traders' expectations 2018-08-15

China's domestic thermal coal price further climbs up after a short pause, beating the conservative expectations most traders held at the beginning of this round of rise in early August.

6 Tight trucking capacity sending coal freight higher in Shanxi 2018-08-15

Truck freight for delivering coking coal within and out of Shanxi province in northern China edged up 10-50 yuan/t, as trucking capacity was constrained partly by environmental crackdown and partly by

7 China's QHD port posts ten consecutive days of coal stock decline 2018-08-15

Qinhuangdao port in North China's Bohai bay posted decline of thermal coal stocks for ten consecutive days, due mainly to faster growth of coal outflows than that of inflows. As of August

8 China accelerates natural gas production in Jul; import stays high 2018-08-15

China accelerated churning out natural gas in July and maintained high imports of the material, according to official data, a move to meet the burgeoning demand from domestic market amid a shift from

9 SW China coal-fired power plants step on edge of bankruptcy 2018-08-15

"We have two 600-MW coal-fired generators – one for the backup and the other running unsteadily. Only the summer and winter peak periods may the two have an opportunity to run at the same time. The co

10 China Coal Daily Track (Aug 14) 2018-08-14

Thermal coal Domestic market A 10 yuan/t increase was seen at some mines in northern Shanxi and Ordos, Inner Mongolia, driven by more inquiries from traders and lower stocks at min

Most Read Articles

1 China spot thermal coal market firms on utilities' active buying 2018-08-07

Spot thermal coal market showed signs of stabilizing at Bohai-rim ports in northern China, alongside utilities' active buying for the power generating fuel and strong sentiment among traders in uphold

2 China Jul coal imports hit multi-year high, surging 49.05% on yr 2018-08-08

China's coal imports reached 29 million tonnes in July, remaining a large growth by 49.05% from a year ago, data from the General Administration of Customs showed on August 8, reaching the highest sin

3 Uncertainty rises towards Chinese coal market after price rally for days 2018-08-10

Chinese domestic thermal coal price headed up again after a brief fall in early August, leaving a wide uncertainty on market trend in the near future. The latest CCI index for 5,500 Kcal/

4 QHD coal stocks slide for 6 days; prices lack continued momentum 2018-08-09

Coal stocks at China's benchmark Qinhuangdao port have been on the drop for six consecutive days, down to 6.42 million tonnes on August 9, showed data from sxcoal.com. That was a 9.8% ret

5 Indonesia's Aug HBA thermal coal price up 3.04% MoM to $107.83/t 2018-08-06

Indonesia's Ministry of Energy and Mineral Resources set its August thermal coal reference price, also known as Harga Batubara Acuan or HBA, at $107.83/t, hitting the highest since March 2012, up 28.4

6 Import coal price continues edging down, little supported by domestic upturn 2018-08-08

China's import thermal coal price is still edging down and gets little support from the recent pickup in the domestic market. Offer-bid spread for Indonesian thermal coal remained at $2/t

7 Chinese traders see losses easing on further upward strength of thermal coal 2018-08-10

Chinese thermal coal traders saw their losses, caused by previous sharp slumps of prices,easing gradually amid the recent upward strength at northern transfer ports. The mainstream

8 China will tighten grips on coke production in major production regions 2018-08-09

China plans to crank up capacity cutbacks in major coke production regions, said the environmental ministry in a draft plan recently, in response to the country's pledge to win the "Blue Sky Protectio

9 Customs clearance delay beefs up China Jul coal imports 2018-08-09

China's coal imports totaled 29 million tonnes in July, soaring 49.05% from a year ago, the customs data showed on August 8, reaching the highest since January 2014. Traders said the main reason behin

10 Caofeidian will play bigger role in coal transfer after Qinhuangdao quits coal business 2018-08-08

Caofeidian port will take over a heavy responsibility from Qinhuangdao port – the current largest coal port in China, which is said to quit coal transfer business gradually in three to five years.