Legal analysis: The three common ways of enterprise M&A are mainly the whole acquisition of the target company, the acquisition of the assets of the target company and the acquisition of the equity of the target company. Among the three ways, the specific practice and consequence of acquiring the target company as a whole is that the acquirer will annex all of the target company. When M&A ends, the target company will no longer exist alone, but become a part of the acquirer. Acquisition of the assets of the target company refers to the acquisition of part or all of the assets of the target company. Finally, it is a special way, that is, acquiring the equity or shares of the target company is the most common form of enterprise merger and acquisition.
Legal basis: Securities Law of People's Republic of China (PRC).
Article 85 An investor may purchase a listed company by tender offer, agreement purchase or other legal means.
Article 86 If an investor holds 5% of the issued shares of a listed company through securities trading in a stock exchange, or through agreements or other arrangements, it shall, within three days from the date of the fact, make a written report to the the State Council Securities Regulatory Authority and the stock exchange, notify the listed company and make an announcement. During the above period, the shares of the listed company shall not be traded again.