The main forms of mergers and acquisitions in the stock market are as follows:
1. The parent company acts as the subject of the merger and becomes a surviving company, and the listed company is cancelled
The parent company is the controlling shareholder and actual controller of the listed company. Due to the development needs of the parent and subsidiary companies, it is convenient for the centralized management of equity and the efficiency of the company’s asset operation . Cancel the original listed company.
2. The listed company acts as the main body of the merger and becomes a surviving company, and the group company is cancelled
The group company is the controlling shareholder of the listed company. With the business development of the group company, in order to avoid potential horizontal competition and improve the overall operation efficiency of the group, the listed company absorbs and merges its controlling shareholder by way of stock exchange. The listed company acts as a surviving company and the group company Cancellation of legal person status.
This kind of absorption merger is a process in which the listed company survives and changes the shareholders of the listed company through stock exchange. The group company can be a limited liability company or a joint stock limited company. Compared with the former absorption merger, this method has a slightly simpler procedure and more time. Faster and more successful.
3. Mergers and acquisitions among non-listed companies
In order to integrate internal resources and speed up the development of the company before listing, companies in the same or similar industries are absorbed and merged. The absorption and merger between non-listed companies is based on a certain day as the benchmark date. After auditing, the net assets of each company are determined. According to the shareholding ratio of each investor, the net asset value of each investor is calculated, and then each capital contribution is determined. Fang’s shareholding in the surviving company. The absorbed company shall be dissolved, and the surviving company shall go through the change procedures in the industrial and commercial department.
What does absorption merger mean?
Merger by absorption refers to the merger of two or more enterprises into one enterprise. After a merger, the acquired enterprise acquires the assets and liabilities of one or several other enterprises by paying cash, issuing stocks or other consideration, and continues to retain its legal person status, while the other one or several enterprises lose their independent legal person status after the merger.