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Shenhua, Guodian merger scheme submitted to State Council

The merger scheme of Shenhua Group and China Guodian Group has been submitted to the State Council of China, as part of the country's efforts to promote integration of coal and power sectors, said a senior official of China Guodian in a summit held on August 2.

The marriage between China's largest coal producer and a leading power generator has long been anticipated since market talks emerged following their suspension of market shares on June 5, said Guan Weizhu, director of Safety Production Department of China Guodian.

This will bring China's largest power producer into being, which is set to be named the National Energy Investment Group, he noted.

The new mega group, with installed power capacity expected to reach 226 GW, will have a total 1.8 trillion yuan ($267.9 billion) of assets and over 60% of asset-liability ratio, he added.

Shenhua Group, with total assets at 979.3 billion yuan, owns 22 subsidiaries, 49 coal mines in operation and 83.05 GW of installed capacity of power plants in operation by the end of 2016, according to a report released by the group.

It has 2,155 km of self-operated railways, coal ports and terminals capable of handling 263 million tonnes of coal and a shipping company with 40 vessels.

China Guodian, with total assets reaching 803.1 billion yuan, has 143 GW of installed capacity of power units and 58.72 million tonnes of coal output by the end of last year.

The company is also outstanding in boosting new energies, with its installed capacity of wind power ranking first in the world at 25.83 GW by end-2016.