China merges energy giants

Beijing: Chinese authorities have approved a mega-merger between the country´s largest coal producer and a top electricity firm, the government said on Monday, reportedly creating the world´s biggest power company in terms of capacity.

The tie-up between the two state-owned companies -- coal producer Shenhua Group Corp. and China Guodian Corp. -- will be named the National Energy Investment Group Co. Ltd., the State-owned Assets Supervision and Administration Commission said in a statement.

The new firm will become the world´s largest power company in terms of installed capacity, according to Bloomberg News, which said its total assets will exceed 1.8 trillion yuan ($271 billion). Beijing has promised to cut its coal production capacity to curb pollution and shift the economy towards a consumer-driven one, while also trimming bloated industrial sectors.