Will state-owned enterprises buy private enterprises?

Legal analysis: there are cases where state-owned enterprises buy private enterprises. State-owned enterprises must evaluate non-state-owned assets when purchasing them. The evaluation results should be approved or filed by the state-owned assets management department according to the specific conditions of the project. The evaluation result of non-state-owned assets is an important basis for determining the purchase price. Under normal circumstances, the transfer price of non-state-owned assets shall not be higher than its assessed price.

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.