What is enterprise merger and reorganization?

Legal analysis: Company merger and reorganization refers to the civil legal act of merging with one or more other enterprises or branches to form enterprises when the company encounters operational difficulties or development needs in market competition.

Legal basis: Article 172 of the Company Law of People's Republic of China (PRC), the merger of companies can 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.