Orient Securities to Buy Shanghai Securities in Full
Orient Securities has announced plans to acquire smaller rival Shanghai Securities using cash and shares. The deal creates a top-ten Chinese brokerage firm.
ORIENT SECURITIES CO LTD-A has announced its intention to acquire 100% of its smaller rival, Shanghai Securities, in a move that signals further consolidation within the financial sector of China. The transaction will be funded through a combination of cash and newly issued shares, according to a company statement released on Sunday. In anticipation of the deal, the brokerage announced that its shares would halt trading starting Monday. The merger is expected to create a significant market player, with the Shanghai Securities News reporting that the combined entity will manage total assets exceeding 600 billion yuan, or approximately $88 billion. This scale would elevate the firm into the ranks of the top 10 brokerages in the country. This strategic acquisition aligns with Beijing's policy of encouraging mergers and acquisitions within the financial industry to build globally competitive investment banks and asset managers.
