Core Viewpoint - China Power (600482.SH) has announced the termination of its plan to acquire a 16.5136% stake in China Ship Diesel Engine Co., Ltd. after nearly a year of planning due to changes in external circumstances [2][5]. Group 1: Transaction Details - The initial plan involved a total transaction value of approximately 3.814 billion yuan, with cash consideration of about 753 million yuan and convertible bond consideration of approximately 3.061 billion yuan [3]. - China Power intended to raise an additional 2 billion yuan to support the acquisition, with allocations for various projects and working capital [3]. - China Power currently holds a 51.8526% stake in China Ship Diesel Engine, making it the largest shareholder and allowing it to consolidate financial statements [3]. Group 2: Business Context - China Ship Diesel Engine specializes in the research, manufacturing, sales, and after-sales service of marine diesel engines [4]. - The acquisition was part of a broader strategy to consolidate the power business of the former China Shipbuilding Industry Group and eliminate competition within the diesel engine sector [4]. - The completion of the acquisition was expected to enhance China Power's control over its diesel engine business and improve decision-making efficiency [4]. Group 3: Termination Reasons - The termination of the acquisition was attributed to changes in external conditions, which the company did not specify but may relate to a decline in global new ship orders and prices [5][6]. - Following the issuance of an inquiry letter from the Shanghai Stock Exchange regarding the transaction, China Power did not respond before deciding to terminate the acquisition [6]. - The company has committed to optimizing the transaction plan and will not plan any major asset restructuring for at least one month following the announcement [7].