


Core Viewpoint - China Shenhua Energy Co., Ltd. is planning a significant acquisition involving coal, coal-fired power, and coal-to-oil and coal-to-gas assets from its controlling shareholder, State Energy Investment Group, which is expected to be a major deal in the Shanghai market [1][5]. Group 1: Acquisition Details - The acquisition will involve issuing shares and cash payments to purchase assets from State Energy Investment Group, which includes coal, coal-fired power, and coal chemical assets [1]. - The transaction is still in the planning stage, and the company's A-shares will be suspended from trading starting August 4, 2025, for a period not exceeding 10 trading days [1][3]. Group 2: Market Context - This acquisition is anticipated to rank among the top merger and acquisition deals in the market, following other significant transactions such as Guotai Junan's merger with Haitong Securities and China Shipbuilding's merger with China Shipbuilding Industry Corporation, with deal values of 976 billion, 1152 billion, and 1160 billion respectively [5]. - The ongoing "merger and acquisition guidelines" have stimulated substantial activity in the Shanghai market, leading to a surge in large-scale mergers, particularly among state-owned enterprises [5][6]. Group 3: Industry Trends - The acquisition is expected to enhance the integration of quality resources into listed companies, aiming to create a leading comprehensive energy company based on coal [5]. - Recent trends show that many state-owned enterprises are pursuing significant acquisitions to drive industry integration and upgrade, with examples including China Power and Sinochem Equipment [5][6].