AI generated

AsianFin -- Hygon Information Technology and Sugon, China's two leading IT companies, announced Sunday that Hygon will acquire Sugon via a share swap, merging the two companies. Trading will be suspended from Monday for up to 10 trading days.

This deal marks the first merger case since the implementation of China's new Administrative Measures for Major Asset Restructuring of Listed Companies in May 2025. The transaction has drawn significant attention as both firms are pivotal players in China's domestic computing power sector.

Industry analysts view the merger as a strategic pivot for China's computing power ecosystem, transitioning from isolated breakthroughs to deep vertical integration. By consolidating resources, leveraging technological complementarities, and enhancing industrial chain synergies, the merged entity aims to accelerate innovation and scale, addressing key weaknesses while building on strengths.