The planned merger and acquisition of one securities company by another, the first such case in China, was unveiled on Friday, Beijing-based National Business Daily reported.

Founder Securities Co Ltd plans to purchase China Minzu Securities Co Ltd for 13.2 billion yuan ($2.18 billion).

The purchaser will buy 100 percent of the equities of China Minzu Securities by private placement.

This means that the shareholders of China Minzu Securities will buy the new shares of Founder Securities at a certain ratio with their shares of China Minzu Securities.

China Minzu Securities will become a wholly owned subsidiary of Founder Securities after the merger.

Lei Jie, chairman of Founder Securities, once remarked that securities companies must expand in size and comprehensiveness so as to increase risk resistance and provide better service for customers.

Founded in 2002, China Minzu Securities has 51 outlets throughout the country, mainly in northeastern China, Sichuan and Hunan provinces. Founder Securities has its strongholds mostly in the southeastern coastal areas.

China Minzu Securities held 62 billion yuan in client assets as of August 2013.