Is it good or bad for private enterprises to be acquired by state-owned enterprises?

Generally speaking, it is good.

The acquisition of private enterprises by state-owned enterprises means that the original enterprise management mode and enterprise culture will change.

Companies acquired by state-owned enterprises do not necessarily become state-owned enterprises. It should be judged according to the capital nature of the enterprise.

If a state-owned enterprise has occupied an absolute controlling position in the acquired company, it should be recognized as a state-owned enterprise.

State-owned enterprises shall not be recognized as state-owned enterprises if they do not form an absolute dominant position in the acquired company.

After the company is acquired by state-owned enterprises, the nature of the company is state-owned enterprises, because the acquired company belongs to the acquisition company; Whether the treatment of grass-roots employees is in accordance with the standards of state-owned enterprises depends on the company's acquisition agreement. When the company is acquired, the acquired party should pay special attention to fully understand the property and debt of the target enterprise.

Private enterprises refer to profit-making economic organizations established or controlled by natural persons and based on wage labor. Including private limited liability companies, private joint-stock companies, private partnerships and private enterprises registered in accordance with the Company Law, the Partnership Law and the Provisional Regulations on Private Enterprises. By the end of 20 18, there were15614,000 private enterprises nationwide, accounting for 84. 1% of all legal entities.

State-owned enterprises refer to wholly state-owned enterprises, wholly state-owned companies and state-owned capital holding companies that the State Council and local people's governments perform the responsibilities of investors on behalf of the country respectively, including enterprises at the same level and enterprises formed by investment step by step under the supervision of central and local state-owned assets supervision and administration institutions and other departments. State-owned enterprises have ownership or control over their capital, and the will and interests of the government determine the behavior of state-owned enterprises. State-owned enterprises are the backbone of national economic development and the pillar of Socialism with Chinese characteristics.

As an organizational form of production and operation, state-owned enterprises have both commercial and public welfare characteristics. Their commerciality is reflected in the pursuit of maintaining and increasing the value of state-owned assets, and public welfare is reflected in the fact that state-owned enterprises are usually set up to achieve the goal of national economic regulation and control and play a role in coordinating the development of all aspects of the national economy. According to the authority of state-owned assets management, state-owned enterprises are divided into central enterprises (state-owned enterprises supervised and managed by the central government) and local enterprises (state-owned enterprises supervised and managed by local governments). Individual central enterprises have a special responsibility in the process of national social and economic development, which belongs to the direct management of the State Council, and these central enterprises belong to the ministerial level.

Legal basis:

company law

Article 172 The merger of companies may take the form of 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 65 The articles of association of a wholly state-owned company shall be formulated by the state-owned assets supervision and administration institution or by the board of directors and submitted to the state-owned assets supervision and administration institution for approval.