Legal analysis: Company merger refers to the legal act that two or more companies form a company by concluding a merger agreement in accordance with the conditions and procedures stipulated in the Company Law. Company merger can be divided into two forms: absorption merger and new merger. Absorption merger, also known as survival merger, refers to the legal act of merger of one or more companies into another company. When the merged company is dissolved, its legal person qualification disappears. The merged company continues to exist and goes through the formalities of change registration. The newly established merger refers to the legal act of merging two or more companies to form a company on the premise that the legal person qualification is eliminated. As a result of the merger, the legal person qualification of the original company was declared to be eliminated, and the newly established company obtained the legal person qualification after going through the establishment registration procedures.
Legal basis: Article 172 of the Company Law of People's Republic of China (PRC), the merger of companies can 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.