Deal could be first among handful to trim overcapacity, number of SOEs

China's major power generator China Guodian Corporation and coal producer Shenhua Group proposed a merger of their coal power assets, setting up a joint venture company worth 54.4 billion yuan ($8.24 billion), the tie-up of which is believed to create world's largest utility provider by capacity. So far, the cabinet has approved the plan.

Guodian will have the controlling stake and invest 29.1 billion yuan of thermal power assets in the joint venture while Shenhua will invest 25.3 billion yuan of thermal power assets into the new company, both sides said in separate filings.