Following the merger of China Power Investment Corporation and State Nuclear Power Technology Corporation in 2015, another two state-owned nuclear enterprises are planning for strategic reorganization.

Last Friday, CNNC Sufa Technology Industry Co., Ltd.(000777,SZ) released an announcement that its controlling shareholder China National Nuclear Corporation(CNNC) are planning for the strategic reorganization with China Nuclear Engineering& Construction Group(CNECC). The detailed plan has not been determined, and the merger is required to be approved by the authorities.

Meanwhile, China Nuclear Energy Technology Co., Ltd.(00611,HK), CNECC'S Hong Kong-listed company, also made an announcement revealing the same message.

It is noticed that this is the first time CNNC and CNECC officially disclosed the information about reorganization via the announcement of their listed companies since 2008 when the rumor of reorganization between two parties has gone around.

During the Two Sessions this year, Wang Shoujun, chairman of CNNC, said that CNNC and CNECC can be seen as a couple so the reorganization of two parties means they are in love with each other. "The length of their relationship cannot be determined. It depends on their feelings and fortune."

"It is a free love and the reorganization is not mandatory." Wang Shoujun responded, "Everyone thinks I am the person who will make a decision for it but actually I am not." 

Email: zhanglingxiao@nbd.com.cn