(Bloomberg) — Guolian Securities Co.’s effort to acquire bigger rival Sinolink Securities Co. has ended after the firms couldn’t agree on terms to create a $13 billion Chinese broker in the consolidating industry.
Sinolink had agreed to be bought in an all-stock deal announced Sept. 20, but specific details for the combination couldn’t be agreed to, the companies said in separate but identical stock exchange filings late Monday.
The deal announcement had sent Guolian’s Hong Kong-listed stock soaring as much as 75% on Sept. 21. Shares of Guolian trading in China dropped as much as 5.8% as the market opened on Tuesday, while Sinolink Securities rose as much as 2.9%.
China’s $1.1 trillion securities industry is facing increased pressure as Wall Street firms such as Goldman Sachs Group Inc. and JPMorgan Chase & Co. are allowed to take full control of ventures in the country this year, forcing consolidation.
(Updates with shares in third paragraph)
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