Guotai Junan Securities announces share swap merger with Haitong Securities

Guotai Haitong Securities Co

09/10/2024 13:30

BEIJING, Oct 9 (Reuters) - Shanghai-based Guotai Junan
Securities  601211.SS  on Wednesday announced details of its
plan to merge with its cross-town rival Haitong Securities
 600837.SS  in a share swap deal, a filing to the Shanghai Stock
Exchange showed on Monday. 
    The brokerage aims to raise up to 10 billion yuan ($1.42
billion) through A-share issuance to its controlling
shareholder, Shanghai State-Owned Assets Operation Co Ltd,
according to the filing.
    Guotai Junan first revealed its intention to acquire Haitong
Securities on Sept. 6 through a share swap. 
    The merger of two state-backed brokerages in China to create
a sector leader with $230 billion in assets is part of Beijing's
drive to consolidate the $1.7-trillion industry amid challenging
markets, and the move is set to gather pace, analysts said.


($1 = 7.0668 Chinese yuan renminbi)

 (Reporting by Ella Cao and Ryan Woo, Editing by Louise Heavens)
 ((Ella.Cao@thomsonreuters.com;))