National Energy Group merged with Guodian

In the first half of this year, the State Energy Group has completed the integration of its headquarters with the model of "functional departments + industrial platforms + service centers" and realized a profit of 40.2 billion yuan.

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 a year after the SASAC announced that the two companies would be restructured.

On August 28, China Shenhua (601088SH) and Guodian Electric Power (600795. SH) announced that the conditions for group merger and delivery previously agreed by the State Energy Investment Group (hereinafter referred to as the State Energy Group) and Guodian Electric Power Group (hereinafter referred to as the State Energy Group) in the merger agreement have been fully met.

Shenhua, China, said it had received a notice from the controlling shareholder, the State Nengliang Group, and a "Decision on the Non-Prohibition of Operator Concentration Anti-monopoly Examination" issued by the Anti-monopoly Bureau of the State Administration of Market Supervision and Administration. After examination, the Council decided that the merger of the group would not be prohibited and the concentration could be implemented from now on. After the merger, China Shenhua controlling shareholder and actual controller will not change.

State power group said that the controlling shareholder of the company changed to the national energy group. According to the previous announcement, the State Energy Group therefore restructured, inherited the Guodian Group directly and indirectly holds a 46.09% stake in Guodian Electric Power.

On February 5 this year, the State Energy Group and the State Power Group signed the "Merger Agreement between the State Energy Investment Group Limited Company and the State Power Group Limited Company of China".

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 date of delivery of the merger, all the assets, liabilities, business, personnel, contracts, qualifications and other rights and obligations of the State Energy Group shall be inherited and undertaken by the State Energy Group.

The merger agreement also states that the delivery of the merger must satisfy the following two conditions, one is that the anti-monopoly declaration in China necessary for the merger has passed the examination by the competent regulator, and the other is that the competent regulator has the right to exempt the State Energy Group from the obligation of offering to buy the listed companies under the State Electricity Group.

These two conditions have now been met.

In August 25th last year, the State Council SASAC issued No. 146, which approved the merger. Three days later, on August 28, the State-owned Assets Supervision and Administration Commission of the State Council issued a circular on the reorganization of China Electric Power Group Corporation and Shenhua Group Limited Liability Company, agreeing that Guodian Group and Shenhua Group should jointly reorganize Shenhua Group and rename it National Energy Group, as the parent company after the reorganization, to absorb the merged Guodian State. Group.

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

According to the official website of the State Energy Group, in the first half of the year, the company steadily pushed forward the reorganization and integration, and improved the efficiency of resource allocation. It has completed the integration of the headquarters with the mode of "functional departments + industrial platform + service center" and realized a profit of 40.2 billion yuan.

Shenhua Group is China's largest coal enterprise, and Guodian Group is one of the "five major power generation groups" in China. The reorganization of the two groups, the realization of coal and electricity pool, the construction of coal and electricity integration, is considered to be the beginning of the domestic coal and electricity industry reorganization.

The combined national energy group will cover coal mining and sales, power generation and thermal production, port and rail shipping, coal chemical industry, finance, energy conservation and equipment manufacturing and other businesses across a wide range of industries. With assets of more than 1.8 trillion yuan, China's energy central enterprise ranks fourth after the State Grid, PetroChina and Sinopec.

In terms of output calculation, the National Energy Group will also have the largest of four worlds, namely, the world's largest coal production company, the world's largest thermal power production company, the world's largest renewable energy production company and the world's largest coal-based oil, coal chemical companies.

China Shenhua said in the announcement that the restructuring of Shenhua Group and Guodian Group will lead to the deep vertical integration of the coal and electricity industry chain, will adjust the competitive advantage of the whole coal and electricity industry chain, effectively enhance the ability to suppress the fluctuation of coal and electricity prices, it can be predicted that coal enterprises and thermal power enterprises with superior resources will be composed in the future. Coal and electricity integrated operation entities will become the norm.