China National Coal Group Corporation is set to acquire Chengdu Construction and Road Bridge Construction Co., Ltd. to enhance its asset portfolio and capitalize on the growing infrastructure demand in China.

Target Information

China National Coal Group Corporation (中化岩土, stock code: 002542) is undergoing a significant asset restructuring initiative. The company plans to acquire 100% of Chengdu Construction and Road Bridge Construction Co., Ltd. (建工路桥) through a share issuance. Chengdu Construction and Road Bridge is a wholly-owned subsidiary of Chengdu Construction Group Co., Ltd. (成都建工) and specializes in municipal road and bridge construction, making it a strategically important asset for China National Coal Group Corporation.

This restructuring is driven by the company's controlling shareholder, Chengdu Xincheng Investment Group Co., Ltd. (兴城集团), which aims to enhance the competitive positioning of its construction assets within the listed company. This move illustrates Xincheng Group's commitment to state-owned asset securitization, thereby aiming to elevate the level of asset securitization associated with state-owned enterprises.

Industry Overview in China

The Chinese construction industry, particularly in the Western region, has been experiencing substantial growth. As urbanization continues to accelerate, the demand for robust infrastructure, including roads and bridges, is skyro