The Research On Ping An Securities Merger Shanghai Securities Synergies And Valuation

Ping An Securities company, integrated with insurance, banking and investment businesses, is now ranked the second in the insurance industry. Ping An Bank has just acquired Shenzhen Development Bank. In comparison with banking and insurance, its business in the area of investment is weak. Competition in securities industry in recent years becomes more and more severe. As the strength of many individual companies are weak, consolidation become urgent. Ping An Security rely on the platform of merge and acquisition to expand its business scope. It is necessary to evaluate the synergy effects of the initial acquisition of Ping An Securities with Shanghai Securities.This paper firstly studied the background conditions to merge, and reviewed the relevant literatures and proposals regarding synergistic effect and valuations. After that, this paper analyzed the development trend of China’s security industry, and then analyzed the background and development strategy of China’s Ping An and Shanghai security company. On the basis of competitive strength in management, intangible assets, financial assets, this paper prepared proposals to remove the obstacles on the ways of merging with Shanghai Securities, including cultural integration and risk management.