Hygon merges with Sugon, creating Chinese computing giant

Chinese chipmaker Hygon Information, valued at 316.4 billion yuan, plans to merge with Sugon Information, worth 90.5 billion yuan, creating a major domestic computing giant. Hygon will absorb Sugon through a share swap, issuing new shares to Sugon shareholders and raising additional funds. The companies announced the merger plan on May 25th, citing a desire to capitalize on opportunities in the information technology sector. Trading of both companies' shares has been suspended. Hygon specializes in processors and accelerators, while Sugon focuses on computing, storage, and data centers. The merger is subject to board and shareholder approvals, as well as regulatory clearance.