SSE STAR Market Sees First Stock-for-Stock Merger Case: Haier Biomedical Plans to Take Absorption Merger of Shanghai RAAS

On December 23, Haier Biomedical announced its intention to issue shares to all shareholders of Shanghai RAAS, a Shenzhen Stock Exchange-listed company, in a stock-for-stock merger. This marks the birth of the first stock-for-stock merger case on the SSE STAR Market.

Shanghai RAAS, the target of the merger, is one of the leading blood product companies in China. Earlier this year, Haier Group obtained control of Shanghai RAAS through a negotiated transfer and voting rights delegation, taking a crucial step in deepening its presence in the medical and health core field. Haier Biomedical has been developing IoT blood solutions since 2018 based on ultra-low temperature refrigeration technology. Shanghai RAAS is a downstream customer of Haier Biomedical's smart blood usage business. They show synergies in various dimensions such as business, research and development, channels, digitalization, and industrial layout. It is anticipated that this merger will further leverage industrial synergies.

Since the introduction of the Eight Measures on Deepening the STAR Market Reform and Serving Scientific and Technological Innovation and the Development of New Quality Productive Forces (hereinafter referred to as the "Eight Measures") and the Opinions on Deepening Market Reform in Mergers and Acquisitions, nearly 60 equity acquisitions have been disclosed on the STAR Market, with a total transaction amount exceeding 13 billion yuan, more than double the number of transactions compared to the same period last year. All newly disclosed merger transactions on the STAR Market since the introduction of the Eight Measures have been industrial mergers.

Since the introduction of the Eight Measures, there have been two issued targeted convertible bonds, 14 unprofitable assets acquisitions, and 9 overseas assets acquisitions among the newly disclosed merger plans according to the statistics. Currently, under the overall guidance of the China Securities Regulatory Commission, the Shanghai Stock Exchange is revising the major asset restructuring review rules, proposing the establishment of a simplified restructuring review process to further enhance the efficiency of restructuring reviews.

From Yicai on December 23, 2024

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