The reorganization of listed companies can be divided into internal reorganization and external reorganization. Internal reorganization means that enterprises readjust and allocate their internal assets according to the principle of optimal combination, bringing the greatest economic benefits to operators or owners. External reorganization refers to the sale (acquisition, merger) and exchange of assets, stripping off non-performing assets, allocating excellent assets, giving full play to the benefits of existing assets and obtaining the greatest economic benefits.
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.