Coal-group plans will help mergers and acquisitions

China is planning several major coal-group mergers and acquisitions by 2020, the country’s top economic planner said Friday. The National Development and Reform Commission, jointly with 11 other government agencies, released a guideline on Friday that made clear that the government will support M&As among coal firms of different scales, regions and ownership and encourage market players to expand business from coal production to service. Coal firms are also encouraged to conduct M&As with players in related sectors, including power, coal, chemicals and steel, to fully integrate their resources in the wider industrial chain. The efforts aim to push the reduction of excess coal capacity, upgrade technology, improve resources allocation and production safety. By the end of last year, the number of coalmines in China dropped to about 7,000, from 10,800 in 2015, according to the NDRC.