Traditional Culture Encyclopedia - Traditional customs - What are holding merger and absorption merger?
What are holding merger and absorption merger?
Holding merger means that the merging party (or buyer) obtains the control right of the merged party (or buyer), and after the merger, the merged party (or buyer) still maintains its independent legal person status and continues to operate, and the merged party (or buyer) confirms the merger of the investment of the merged party (or buyer) formed by the business combination. For example, Company A acquires 80% equity of Company B to realize control.
Absorption merger refers to the merger of two or more companies, in which one company absorbs other companies and continues to exist, while the other companies' main qualifications are eliminated at the same time. Company A means A+B=A, Company B disappears, and only Company A exists.
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