National energy group and Guodian merge

In the first half of the year, the national energy group has completed the headquarters organization integration in the mode of "functional department + industrial platform + Service Center", with a profit of 40.2 billion yuan.

One year after SASAC announced that the two companies would restructure, the merger of China Shenhua Group (hereinafter referred to as Shenhua Group) and China Guodian group (hereinafter referred to as Guodian group) was finally settled.

On August 28, China Shenhua (601088sh) and Guodian power (600795. SH) both announced that the group merger and delivery conditions previously agreed by the state energy investment group (hereinafter referred to as the State Energy Group) and Guodian group in the merger agreement have all been met.

China Shenhua said that it has received a notice from the controlling shareholder, guonengliang group, and has received a "decision not to prohibit the anti-monopoly examination of business concentration" issued by the antimonopoly Bureau of the state market supervision and administration. After examination, the bureau decided not to prohibit the merger of groups, and it can implement the centralization from now on. After the merger, the controlling shareholder and actual controller of China Shenhua will not change.

State power group said the company's controlling shareholder changed to national energy group. According to the previous announcement, the national energy group was reorganized and inherited 46.09% shares of Guodian power directly and indirectly held by Guodian group.

On February 5 this year, China National Energy Group and Guodian Group signed the merger agreement between China National Energy Investment Group Co., Ltd. and China Guodian Group Co., Ltd.

According to the merger agreement, after the merger of the two companies, Guodian group will be cancelled, and national energy group will continue to exist as a merged company. Since the merger and delivery date, all assets, liabilities, business, personnel, contracts, qualifications and all other rights and obligations of Guodian group shall be inherited and undertaken by national energy group.

The merger agreement also states that on the premise that the agreement takes effect, the delivery of the merger must also meet the following two conditions: first, the necessary anti-monopoly declaration in China for the merger has passed the examination of the competent regulatory authority; second, the competent regulatory authority has exempted the state energy group from the obligation of tender offer to the listed companies of the state power group.

Now, both conditions have been met.

On August 25 last year, the state owned assets supervision and Administration Commission of the State Council issued No. 146 document, approving the merger. Three days later, on August 28, the state owned assets supervision and Administration Commission of the State Council issued the "notice on the reorganization of China Guodian Group Corporation and Shenhua Group Co., Ltd." and agreed to implement the joint reorganization of Guodian group and Shenhua Group. Shenhua Group was renamed as national energy group, as the parent company after the reorganization, and absorbed and merged Guodian group.

On November 20, 2017, Guodian group and Shenhua Group held a restructuring meeting, announced the merger and reorganization of the two companies, and formally established the national energy group.

According to the official website of the national energy group, in the first half of the year, the company made solid progress in restructuring and integration, improved the efficiency of resource allocation, and completed the headquarters organization integration in the mode of "functional department + industrial platform + Service Center", with a profit of 40.2 billion yuan.

Shenhua Group is the largest coal enterprise in China, while Guodian group is one of the "five largest power generation groups" in China. The reorganization of the two groups, the realization of coal power joint venture and the construction of coal power integration, is considered to be the first to start the reorganization of the domestic coal power industry.

After the merger, the national energy group will cover coal mining and sales, power generation and thermal production, port and railway shipping, coal chemical industry, finance, energy conservation and equipment manufacturing and other businesses, covering multiple industries. Involving assets of more than 1.8 trillion yuan, it is the fourth largest energy central enterprise in China after state grid, PetroChina and Sinopec.

In terms of output calculation, the national energy group will also have four largest companies in the world, namely, the world's largest coal production company, the world's largest thermal power generation company, the world's largest renewable energy power generation company and the world's largest coal to oil and coal chemical industry company.

China Shenhua once said in the announcement that the restructuring of Shenhua Group and Guodian group will lead to the deep vertical integration of the coal power industry chain, adjust the competitive advantage of the whole coal power industry chain, and effectively improve the ability to stabilize the price fluctuation of coal and electricity. It can be predicted that in the future, coal enterprises with advantageous resources and thermal power enterprises will form an integrated coal power business entity.