What is the meaning of mergers and acquisitions and reorganization, what are the modes of corporate mergers and acquisitions

The concept of mergers and acquisitions: merger of two or more companies, the formation of new companies or mutual equity participation, can be called mergers and acquisitions. M&A mode includes: the listed company as the main body of the investment in direct investment and mergers and acquisitions; the major shareholders set up subsidiaries as the main body of the investment in investment and mergers and acquisitions; by the major shareholders to set up an industrial investment fund as the main body of the investment in investment and mergers and acquisitions; by the listed company to set up an industrial investment fund as the main body of the investment in investment and mergers and acquisitions.

Legal basis

Article 172 of the Company Law of the People's Republic of China

A merger of a company may be by absorption or by merger of new establishment.

A company absorbing another company is a merger by absorption, and the absorbed company is dissolved. The merger of two or more companies to establish a new company is a merger by de novo establishment, and the merging parties shall be dissolved.

Article 173

The merger of companies shall be effected by the signing of a merger agreement by the merging parties and the preparation of a balance sheet and a list of property. The company shall notify the creditors within ten days from the date of the resolution on the merger and announce it in newspapers within thirty days. Within thirty days from the date of receipt of the notice, or within forty-five days from the date of the announcement if the notice has not been received, the creditors may request the company to settle the debts or provide corresponding guarantees.