(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.
Trading resumed Tuesday in China after both firms' shares had been halted since the takeover plan was revealed. Guolian fell as much as 8.3% after soaring nearly five-fold since July's listing in Shanghai, and securities stocks were among the biggest decliners in the CSI 300 on Tuesday. But Sinolink rose 5.6% as of the midday break.
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.
©2020 Bloomberg L.P.
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