Xin Lang Cai Jing·2026-01-15 13:24Core Viewpoint - The A-share market is experiencing a wave of merger and acquisition (M&A) terminations, with at least 30 companies announcing the cessation of major asset restructuring plans since November 2025, reflecting a significant trend in the market [2][18]. Group 1: M&A Termination Trends - Since November 2025, over 60 companies in the A-share market have terminated or stopped major asset restructuring plans, indicating a "termination tide" in M&A activities [2][18]. - The termination of M&A deals is not an isolated incident, as it has become a common occurrence in the current market environment [2][18]. - The reasons for these terminations often include changes in market conditions and disagreements on core terms, which are common across various cases [3][19]. Group 2: Challenges in M&A Processes - Companies face significant challenges in information disclosure, as they are required to announce restructuring plans within 10 trading days, leaving little time for thorough due diligence and negotiations [4][20]. - The rapid disclosure requirements lead to a situation where companies may not fully understand the complexities of the deal, resulting in disagreements during negotiations [5][21]. - The current regulatory framework emphasizes quick disclosures, which can increase the risk of negotiations breaking down later in the process [5][21]. Group 3: Market Dynamics and Regulatory Environment - The regulatory environment has shifted towards stricter disclosure requirements, which, while aimed at improving the quality of M&A transactions, has also made the negotiation process more challenging [7][25]. - The "merger six rules" and other encouraging policies have led to a surge in M&A activities, but the increase in terminated deals suggests a need for a more balanced approach to regulation [8][24]. - The market is currently characterized by a high level of activity, but the increasing number of failed transactions may lead to a more rational perspective among investors regarding the risks associated with M&A [26][27]. Group 4: Specific Case Studies and Insights - A significant portion of terminated deals is attributed to disagreements over valuation, with approximately 45% of cases citing this as a primary reason [10][27]. - Specific examples illustrate the challenges faced during negotiations, such as disagreements over valuation premiums and the complexities of cross-industry mergers [11][29]. - The quality of target assets and regulatory compliance issues also play critical roles in the success or failure of M&A transactions, with many deals being terminated due to undisclosed liabilities or insufficient regulatory approval [33].