Shares of Huadian Power, a leading Chinese power generation company, surged by 5.11% on Wednesday following the announcement of a major acquisition deal with its key shareholder.

The company disclosed plans to acquire thermal power assets worth 7.17 billion yuan ($1.01 billion) from its controlling shareholder. The transaction will be settled through a combination of a new share issuance and cash payment.

This strategic move is expected to significantly bolster Huadian Power's thermal power generation capacity and strengthen its position in the domestic energy market. Analysts view the acquisition as a positive development, potentially unlocking synergies and driving future growth for the company.