CNNC-CNEC Merger Marks New Era for Chinese Industry

摘要

In a move that could profoundly reshape China’s nuclear industry, China National Nuclear Corp. (CNNC) and China National Engineering Corp. (CNEC) this week announced an intention to merge their companies, creating a $16 billion behemoth that unites the country’s oldest nuclear developer with its de facto monopoly nuclear constructor, and combines nuclear-related defense activities in one company. “The detailed plan of this strategic restructuring is not yet decided,” according to the Mar. 20 statements from both companies. There is no announced timetable and “once the plan is clear, it will still need approval from the regulator”—in this case the State-owned Asset Supervision and Administration Commission (Sasac). Both companies have completed initial public offerings—CNNC in 2015 and CNEC in 2016—and both are listed on the Shanghai exchange (NIW May27’16). The merger would create a massive company with assets of roughly 110 billion Chinese yuan ($15.9 billion), counting CNNC’s 64 billion yuan and CNEC’s 57 billion yuan.