China Resources (836) Power Holdings Co. a power generation company, and China Resources Gas Group Ltd. (1193), a natural gas distributor, are negotiating a possible merger to form an integrated energy group under their state-owned parent China Resources (Holdings) Co.
Shares of both companies have been suspended pending an announcement, the two companies said in separate statements to the Hong Kong Stock Exchange today. Neither provided details of their discussion nor a time line for the negotiations.
China Resources Power’s market valuation is HK$121.2 billion ($15.6 billion), while China Resources Gas has a market size of HK$48.6 billion.
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