What's the difference between acquisition and merger?

The difference between mergers and acquisitions is that the merged company is dissolved, merged with the merged company to form a new company; Acquisition means that the acquirer acquires the company at the corresponding market price, and the acquired company can still exist as a legal entity. The connection is that both of them are aimed at expanding the market share and business scale of enterprises, and both of them are trading objects of enterprise property rights.

legal ground

Article 172 of the Company Law of People's Republic of China (PRC) * * * The merger of companies can adopt 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 174 of the Company Law of People's Republic of China (PRC) When companies are 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.