Two Chinese State-owned enterprises (SOEs) have merged into an energy conglomerate with total assets worth 1.8 trillion yuan ($272.96 billion).

The new company, China Energy Corporation, has become the world's largest in coal mining, thermal power, renewable energy and coal-to-liquid conversion, according to the founding ceremony held Tuesday.

It was formed by the reorganization of power generator China Guodian Corporation and coal miner Shenhua Group.

"It is the biggest consolidation among central SOEs in recent years," said Xiao Yaqing, chairman of the State-owned Assets Supervision and Administration Commission.

Xiao expects the deal to improve corporate profitability and help coordinate coal and electricity markets.