Control refers to the power that an enterprise can decide the financial and business policies of another enterprise and gain benefits from the business activities of another enterprise. Business combination is divided into business combination under the same control and business combination under different controls.
The main feature of enterprise merger under the same control is that all parties involved in the merger are controlled by the same party or parties before and after the merger, and they are not temporary. Usually, business combination under the same control refers to the merger between enterprises in the same enterprise group. If the parent company transfers the net assets of a wholly-owned subsidiary to the parent company and cancels the subsidiary, the parent company transfers its rights and interests in one subsidiary to another subsidiary.