Interpretation of merger terms

Merger usually refers to the economic behavior that an enterprise obtains the property rights of other enterprises by purchasing cash, securities or other forms, so that other enterprises lose their legal personality or change their legal entities, and gain decision-making control over these enterprises. Merger is one of the forms of merger, which is equivalent to absorption merger in China's company law. It means that a company absorbs other companies to survive, and the absorbed company is dissolved.