China-based Shenhua Energy Co., a unit of China's coal producer Shenhua Group Corp., has entered into an agreement with GD Power Development Co., part of China Guodian Corp., to merge power assets to create a combined entity.
The new firm will become the world’s largest power company in terms of installed capacity, according to Bloomberg News.
The two state-owned companies will be named the National Energy Investment Group Co. Ltd., the State-owned Assets Supervision and Administration Commission said in a statement.
The main business of Shenhua Group Corp. involves the production and sale of coal, railway and port transportation of coal-related materials and power generation and sales, according to its website.
China Guodian Corp. mainly develops, operates and manages power generation assets and organises electricity production and sales. Its total assets reached 803.1 billion yuan ($121 billion) as of 2016, the company said on its website.
