Analysis of the Motivations and Performance of Green Mergers and Acquisitions by PowerChina from a Resource Orchestration Perspective

Jinghan Wang; Yijun Chen; Yu Gan; Jie Huang

doi:10.6981/FEM.202611_7(11).0001

Authors

Jinghan Wang Sichuan University of Science & Engineering, Yibin, China
Yijun Chen Sichuan University of Science & Engineering, Yibin, China
Yu Gan Sichuan University of Science & Engineering, Yibin, China
Jie Huang Sichuan University of Science & Engineering, Yibin, China

DOI:

https://doi.org/10.6981/FEM.202611_7(11).0001

Keywords:

Green Mergers and Acquisitions; Resource Orchestration; Asset Swap; Dual-carbon Goals; M&A Performance; Green Transformation.

Abstract

Under China's "dual-carbon" goals, this study applies resource orchestration theory to examine POWERCHINA's 2022 asset swap-a green-oriented restructuring exchanging real-estate assets for power-grid ancillary assets-across three stages: resource structuring, bundling, and leveraging. The transaction was driven jointly by external institutional pressures (the dual-carbon strategy, state-owned enterprise reform, and real-estate financing constraints) and internal resource-reconfiguration needs. Based on indicators from 2019 to 2025, the transaction strategically realigned the resource portfolio: new-energy capacity, green patents, and carbon-emission reductions expanded substantially. However, the revenue share of new energy remained low, leverage increased, and profitability declined after an initial rise, indicating incomplete conversion of green resources into sustainable financial returns. Implications are offered for green asset restructuring and resource orchestration in similar enterprises.

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