Shanghai-based Guotai Junan Securities on Wednesday announced details of its plan to merge with its cross-town rival Haitong Securities in a share swap deal, a filing to the Shanghai Stock Exchange showed.
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 Management 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)
Reuters
