Shanghai Power to be acquired by parent Shanghai Electric

Shanghai Power Transmission & Distribution Co Ltd said yesterday it would be acquired by its Hong Kong listed parent, Shanghai Electric, through a share swap aimed at boosting competitiveness.

Under a proposal, Shanghai Electric would buy shares it does not already own in Shanghai Power by issuing new domestic currency A shares to Shanghai Power shareholders, it said in a statement.

The acquisition - the latest in a series among state-run Chinese companies ¨C would create a group with a combined market capitalisation of US$7.3bil.