What is a merger and acquisition company?

Legal analysis: Legal person M&A refers to the merger of two or more independent enterprises into one enterprise under the conditions of equality, voluntariness and equal compensation. The essence of M&A is a kind of right transfer behavior in the process of enterprise control right movement, which is made by all right subjects according to the institutional arrangement of enterprise property rights.

Legal basis: Securities Law of People's Republic of China (PRC).

Article 85 An investor may purchase a listed company by tender offer, agreement purchase or other legal means.

Article 86 If an investor holds 5% of the issued shares of a listed company through securities trading in a stock exchange, or through agreements or other arrangements, it shall, within three days from the date of the fact, make a written report to the the State Council Securities Regulatory Authority and the stock exchange, notify the listed company and make an announcement. During the above period, the shares of the listed company shall not be traded again. After an investor holds or shares 5% of the issued shares of a listed company with others through agreement or other arrangements, it shall make a declaration and announcement in accordance with the provisions of the preceding paragraph for each increase or decrease in the proportion of the issued shares of the listed company. During the reporting period and within two days after making the report and announcement, the shares of listed companies shall not be traded again.

Article 87 A written report and announcement made in accordance with the provisions of the preceding article shall include the following contents: (1) The name and domicile of the shareholders. (2) Name and amount of shares held. (3) The date when the shareholding reaches the legal proportion or the shareholding increase or decrease reaches the legal proportion.