Acquisition refers to an economic behavior in which a company obtains a certain degree of control over other companies through property rights transactions in order to achieve certain economic goals. Acquisition is a form of enterprise capital management, which has both economic and legal significance. The economic significance of acquisition means that the management control of the enterprise changes hands, and the original investor loses the management control of the enterprise, which is essentially to gain control. When the industry is depressed and the economy is depressed, you can buy low-priced stocks in the secondary market of the other company. Legally speaking, according to the provisions of China's Securities Law, acquisition refers to the act of issuing an offer to buy shares of a listed company when the listed company holds 30% of its issued shares, the essence of which is to buy the equity of the acquired enterprise.
Legal basis: People's Republic of China (PRC) Company Law.
Article 172 The merger of companies may 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.
Article 173 When a company is merged, all parties to the merger shall sign a merger agreement and prepare a balance sheet and a list of assets. The company shall notify the creditors within 10 days from the date of making the merger resolution and make an announcement in the newspaper within 30 days. Creditors may, within 30 days from the date of receiving the notice, or within 45 days from the date of announcement if they have not received the notice, require the company to pay off debts or provide corresponding guarantees.
Article 174 When a company is merged, the creditor's rights and debts of the merging parties shall be inherited by the surviving company or the newly established company after the merger.
Article 175 When a company is divided, its property shall be divided accordingly.
When the company is divided, it shall prepare a balance sheet and a list of assets. The company shall notify the creditors within 10 days from the date of making the resolution of separation, and make an announcement in the newspaper within 30 days.
Article 176 The debts of the company before division shall be jointly and severally liable by the company after division. However, unless the company and creditors reach a written agreement on debt settlement before division.