China approves merger of two energy companies to create a 227 billion Euro behemoth

China has approved the merger of China Guodian and Shenhua Group, two of the country’s largest state energy companies.

The State-owned Assets Supervision and Administration Commission, the watchdog for state-owned enterprises, approved the merger of Shenhua Group Corp., the country’s top coal miner, with China Guodian Corp., among its largest power generators. With assets of 1.8 trillion yuan (227 billion Euro), the new entity will be the largest by installed capacity and world’s second-biggest company by revenue, according to Bloomberg New Energy Finance.

The Shenhua-Guodian tie-up may be the first of a handful of mergers in China...