Guotai Junan to merge with Haitong Securities in stock swap

Guotai Junan Securities Co., Ltd. (SSE: 601211) and Haitong Securities Co., Ltd. (SSE: 600837) announced a merger agreement. Guotai Junan will absorb Haitong Securities through a stock swap. The merger will create a combined entity with over 17 billion shares outstanding. The deal values Haitong Securities at approximately 58.46 billion yuan, based on the 60-day average trading price of both companies' A-shares prior to the announcement. Guotai Junan will also raise up to 10 billion yuan in supporting funds from Shanghai State-owned Assets Operation Co., Ltd. The merger, pending regulatory approval, will result in Haitong Securities delisting and cancellation of its legal person status. Post-merger, the combined entity will operate under a new name. The transaction is expected to enhance the combined company's capital strength, customer base, and service capabilities, accelerating its development into a leading investment bank.