Guotai Junan merges with Haitong Securities after regulatory approval

Guotai Junan Securities (SSE:601211) received approval from the China Securities Regulatory Commission (CSRC) to merge with Haitong Securities through a share swap and absorbtion. Guotai Junan will issue 5,985,871,332 new A-shares to Haitong's A-share holders and H-shares to H-share holders. The merger also involves a concurrent fundraising of up to 10 billion yuan (approximately US$1.45 billion). Post-merger, Haitong Securities will dissolve, with its branches becoming part of Guotai Junan. The CSRC approval also addresses changes in major shareholders and actual control of related entities like Haifu Fund, Fuguo Fund, and Haitong Futures. The approval requires Guotai Junan to submit a detailed integration plan within one year and mandates completion of the merger process within 12 months.