On August 24, Zhiguang Electric and Dinggu JiChuang successively pressed the “end button” of the merger and acquisition. According to incomplete statistics, at least 11 A-share mergers, acquisitions and restructuring projects have been terminated since August. Sorting through the details of the case, the reasons for termination can be broadly divided into three categories: changes in the market environment or underlying fundamentals, failure to agree on core terms of the transaction, and inability to proceed with the review or transaction process. Since this year, A-share mergers and acquisitions have continued to be active and cases of termination have increased simultaneously. Both parties to the transaction are clearly scrutinizing the quality of the target, transaction price, payment methods, and industry collaboration. A number of projects where transaction conditions are difficult to match, profit expectations have changed, or the industrial logic has yet to be verified have been withdrawn one after another. In the future, the M&A market will enter a fuller price game and quality screening stage.

On August 24, Zhiguang Electric and Dinggu JiChuang successively pressed the “end button” of the merger and acquisition. According to incomplete statistics, at least 11 A-share mergers, acquisitions and restructuring projects have been terminated since August. Sorting through the details of the case, the reasons for termination can be broadly divided into three categories: changes in the market environment or underlying fundamentals, failure to agree on core terms of the transaction, and inability to proceed with the review or transaction process. Since this year, A-share mergers and acquisitions have continued to be active and cases of termination have increased simultaneously. Both parties to the transaction are clearly scrutinizing the quality of the target, transaction price, payment methods, and industry collaboration. A number of projects where transaction conditions are difficult to match, profit expectations have changed, or the industrial logic has yet to be verified have been withdrawn one after another. In the future, the M&A market will enter a fuller price game and quality screening stage.