A merger between two Chinese energy giants will create the world’s largest utility, worth $278 billion (£215.8bn).
China’s largest coal miner, Shenhua Group, is to take over state-owned power producer Guodian Group to create the National Energy Group.
The new company, which will be both the country’s largest wind developer and biggest coal producer, is expected to have a total installed capacity topping 225GW.
The deal will provide Guodian with access to Shenhua’s infrastructure of rail, harbors and shipping fleet, as well as its deep cash reserves.
For Shenhua, the merger is likely to ease dependence on polluting coal and move towards more renewable power.
The move comes as the Chinese Government aims to cut inefficiencies and debts across its state power companies, with the ultimate goal of making them more globally competitive.
It currently manages 103 state-owned businesses across the power, shipping and metals sectors – a number that more mergers could see eventually fall to about 40.