What is enterprise merger and acquisition?

Legal analysis: M&A is a way to change the organizational form of a company in company law. Specifically, it means that an enterprise obtains its own shares in exchange for shares of other enterprises in order to obtain all the assets and control rights of the latter, thus expanding the scale and business scope of the enterprise and making the enterprise property rights transaction form. Merger and acquisition of companies is generally called merger and establishment of companies, that is, two companies are established as a new company through merger.

legal ground

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.