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On the Merger and Union of Enterprises

Have you ever heard of enterprise merger? Business combination is the right combination of two or more enterprises according to the contractual relationship, in order to realize the optimal combination of production factors; Enterprise consortium is a form of economic consortium (the largest economic consortium is the European Union), which is completely different from the consortium of joint companies and strategic partners. Specifically, it is an enterprise (consortium) formed by a group company or a cross-shareholding company. Let me give you a detailed introduction to the relevant legal knowledge of enterprise mergers and acquisitions.

Merger and Union of Enterprises I. Merger of Enterprises

Enterprise merger is a form of enterprise property right transaction in which the assets or control rights of the merged enterprise are obtained by cash or stock exchange to expand the scale and business scope. From the microscopic point of view, it is an important way for enterprise capital concentration and scale expansion. In a macro sense, it is one of the important ways to adjust industrial organization structure, regional layout structure, optimize resource allocation and improve resource utilization efficiency.

1, advantages of enterprise merger and acquisition. There are three advantages for enterprises to expand through mergers and acquisitions: first, they can save transaction costs and optimize resource allocation; Second, it can expand the scale with less investment, faster speed and lower risk; Third, it can eliminate brand competition, eventually form a monopoly and obtain high profits.

2. Types and methods of merger. There are three main types, namely vertical merger, horizontal merger and compound merger. Vertical merger refers to the merger between different enterprises in adjacent production stages. Horizontal merger refers to the merger between enterprises producing similar products or similar processes. Compound merger refers to the merger between enterprises whose products are not closely related to the market.

Second, the enterprise alliance

Enterprise alliance refers to the cooperation and mutual assistance in financial support, material supply, technology development, marketing, talent training and other aspects reached or established by enterprises with partners or competitors on the basis of mutual trust in order to develop and strengthen themselves and improve market competitiveness.

There are two types of enterprise alliances: tight and loose. Close enterprise alliance will eventually develop into enterprise merger; Loose enterprise cooperation only maintains an equal cooperative relationship.

Third, mixed mergers and acquisitions.

Mixed merger refers to the merger between enterprises that are neither horizontal nor vertical in nature, and the usual diversification is like this. Judging from the nature of Haier's M&A, it took the road of mixed M&A from the beginning.

On the basis of consolidating its market share of household appliances, Haier is vigorously developing into a new industry and a new field: information industry. Through cross-industry mergers and acquisitions, Haier successively merged and established Hangzhou Haier Electric Appliance Co., Ltd. and Hefei Huangshan TV Factory, entered the field of black household appliances, launched digital color TVs, and began to enter the information industry with the research on microcomputers and enterprise informatization. Haier Holdings merged with Qingdao No.3 Pharmaceutical Factory to start biomedical research and enter the field of bioengineering. In the small household appliances industry, Haier established Laiyang Haier Electric Appliance Co., Ltd. through brand operation, developed and produced dishwashers and disinfection cabinets, and entered the small household appliances industry.