Coal mining industry: mergers and acquisitions are expected to accelerate

Event: Premier Wen Jiabao of the State Council presided over the State Council executive meeting on the 25th to study and deploy and promote the merger and reorganization of coal mining enterprises.

Comments: The State Council executive meeting affirmed that mergers and acquisitions of coal mining enterprises are an important policy and industry plan for China's current coal industry reform.

The meeting emphasized that supporting qualified state-owned and private coal mining enterprises to become the main body of mergers and acquisitions, in addition to encouraging coal mine enterprises of various ownership systems, but also encouraging Other industries, such as enterprises in the main related industries of the coal industry to use property rights as a link. Take the shareholding system as the main form to participate in mergers and acquisitions. However, the meeting did not mention ways to encourage mergers and acquisitions across provinces and cities.

The meeting also stressed the need to strengthen policy guidance, introduce supporting measures in the areas of finance, taxation, finance, etc., support the coal mine safety transformation and technological transformation of the merged enterprises, act in accordance with the law, earnestly safeguard the legitimate rights and interests of coal mine enterprise employees and investors, and ensure the merger of coal mining enterprises. The restructuring work was carried out in an orderly manner.

At present, coal resources integration work in Shanxi, Henan, Shandong and other places is underway. It is expected that this meeting will further promote the implementation of mergers and reorganizations of coal enterprises in various coal-producing provinces and cities. We expect that the follow-up is likely to introduce some fiscal, taxation and financial policies for the integrated small coal mines, such as tax reduction and exemption for small coal mines to purchase advanced coal mining equipment, and purchase equipment loan interest rate concessions to enhance the enthusiasm of mergers and acquisitions.

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