Guotai Junan to merge with Haitong Securities in all-stock deal

Guotai Junan Securities Co., Ltd. (SSE: 601211) announced plans to merge with Haitong Securities Co., Ltd. (SSE: 600837) in an all-stock deal. The merger will be structured as a share exchange, with Guotai Junan issuing new A-shares and H-shares to Haitong Securities' shareholders at a ratio of 1:0.62. The deal values Haitong Securities at approximately ¥976.15 billion (US$133.2 billion) based on the 60-day average trading price before the announcement. Concurrently, Guotai Junan will raise up to ¥100 billion (US$13.7 billion) in supporting funds through a private placement to its controlling shareholder, Shanghai State-owned Assets Operation Co., Ltd. The combined entity will retain the Guotai Junan name and become one of the largest investment banks in China, with total assets exceeding ¥16 trillion (US$2.2 trillion). The merger requires regulatory approvals and is expected to close in 2025.