Guotai Junan to merge with Haitong Securities in $12B deal

Guotai Junan Securities Co., Ltd. (SSE: 601211) announced plans to merge with Haitong Securities Co., Ltd. (SSE: 600837) in a stock-for-stock transaction, creating a combined entity with over $1.7 trillion RMB in assets. The deal, valued at approximately $12 billion USD, will see Guotai Junan issue new A-shares and H-shares to Haitong's existing shareholders at a ratio of 1:0.62. Concurrently, Guotai Junan will raise up to $1.6 billion USD in supporting funds from its controlling shareholder, Shanghai International Group. Post-merger, the surviving entity, retaining the Guotai Junan name, will delist Haitong Securities from both the Shanghai and Hong Kong Stock Exchanges. The merger aims to strengthen both firms' positions in wealth management, investment banking, and asset management, creating a leading investment bank with expanded global reach and enhanced digital capabilities. The transaction is subject to regulatory approvals.