Workers unload coal at a storage site along a railway station in Hefei, Anhui province.

The Chinese government approved the merger of electricity producer China Guodian and coal company Shenhua Group on Monday in a move that will create the world's largest power company by capacity.

Beijing authorities confirmed the deal in a one line statement posted Monday from The state-owned Assets Supervision and Administration Commission.

According to Bloomberg data, the joint companies will command combined assets of $271 billion and will have installed capacity of more than 225 gigawatts.

Both Guodian and Shenhua have subsidiaries with shares traded on stock exchanges in Hong Kong and Shanghai.

The company will reportedly generate most of its energy from coal.