Two more Chinese nuclear firms poised for consolidation
If marriage materialises, it would see the number of companies directly under the management of the central government reduced to 101 from 170 in 2009
State-owned China National Nuclear Corp (CNNC) and China Nuclear Engineering & Construction Corp (CNEC) have emerged as the latest candidates for a merger, as Beijing pursues consolidation among central government-run enterprises to drive efficiency gains.
If the marriage materialises, the restructuring would see the number of companies directly under the management of the central government reduced by one to 101, and result in a fully up and downstream integrated powerhouse in the nuclear industry.
It could also see the two Beijing-based nuclear giants re-integrated, after they were separated into independent entities from the erstwhile behemoth China Nuclear Industry Corp in 1999 in the previous round of major restructuring of state-owned enterprises.
Two listed units of the two companies – China National Nuclear Power and China Nuclear Engineering – said in separate statements on Monday to Shanghai Stock Exchange that they have been notified by their respective parents that they are “planning certain strategic restructuring matters”.
They have not yet been confirmed and will require government approval when finalised, they added.
If realised, it could result in the second merger in two years in the state-dominated nuclear industry.