Case Study Of The Mergers And Acquisitions Of CLSA Led By CITICS

The vicissitude of securities industry is linked closely with the national capital markets. With the booming of the economic construction in our country, the inland capital market has developed and grown rapidly and fruitfully in recent20years. Security companies promoted the construction of financial system, based on securities market, and the formation of social assets diversification. These are their contributions in the economic construction.However, there are secret worries behind the compression development. Inland brokers have been deeply troubled by the defects of scarce innovation, feeble capital strength and frail capability in shielding against risks. With the capital markets gradually expanded and opened in our country, in this new age, inland brokers must find a way out for themselves’development in the future. As the flagship of the industry, CITIC Securities (CITICS) come out in time. In2012, CITICS led the merger and acquisitions of CLSA. It opened the prelude of the inland brokers’ internationalization development by the way of cross-border mergers and acquisitions.Through the systematic study on the Merger and acquisition of CLSA led by CITICS, a review of the CITICS’history of mergers and acquisitions in the inland markets, and a comprehensive analysis for the aspects of the overall process, causes, effects, and risks etc. from the CLSA merger and acquisition. Then, this paper tries to find some questions and hidden dangers, especially make a point analysis of the controversial buyout price and cultural integration, and put solutions for the questions. It is predictable that the chance of inland brokers finding the international way will be more and more, though the method is not clear. CITICS offered a model with this merger, and this is a positive try and full of guiding signification. In the end of this paper, based on the CITICS’ merger, there is a thought of cross-border mergers and acquisitions for the inland broker in the future. That is, not only the clear thought of the merger development, but also relative preparation for choosing the merger target, financing and related business.