Shenhua and Guodian suspend shares again for potential merger

China’s largest coal enterprise, Shenhua Group Corporation, and one of the five major power companies, China Guodian Corporation, issued identical announcements again on 18 June 2017, following the first announcement on 4 June. Insiders told Jiemian that the two corporations are discussing a merger.


If the merger happens, assets involved will exceed C¥1700 bn and the new company's installed power generation capacity will reach around 226 million kW, making it the biggest power generation enterprise.

In a briefing on 2 June 2017, State-Owned Assets Supervision and Administration Commission stressed again that central SOE M&As will continue. Future central SOEs will be divided into industrial groups, investment groups and operational groups.