The concept of merger and reorganization: two or more companies merge to form a new company or share in each other, which can be called merger and reorganization. The ways of enterprise merger and acquisition include: listed companies directly invest in mergers and acquisitions as investors; Major shareholders set up subsidiaries as investors to conduct investment mergers and acquisitions; The industrial investment fund funded by major shareholders will be set up as the main investor to invest in mergers and acquisitions; An industrial investment fund funded by listed companies will be set up as the main investor to initiate investment mergers and acquisitions.

legal ground

Article 172nd of the Company Law of People's Republic of China (PRC)

Company merger can adopt absorption merger or new merger.

A company absorbs other companies for merger, and the absorbed company is dissolved. The merger of two or more companies to form a new company is a new merger, and the parties to the merger are dissolved.

Article 173

When a company is merged, all parties to the merger shall sign a merger agreement and prepare a balance sheet and a list of assets. The company shall notify the creditors within 10 days from the date of making the merger resolution and make an announcement in the newspaper within 30 days. Creditors may, within 30 days from the date of receiving the notice, or within 45 days from the date of announcement if they have not received the notice, require the company to pay off debts or provide corresponding guarantees.