Mergers and acquisitions in China - statistics & facts
A merger is a process by which two or more companies merge as one new company, while acquisition often refers to the process when a financially stronger company acquires over 50 percent of shares of another company and folds it into its operation. The motivation for mergers and acquisitions is to increase the present capabilities of a company and get better prospects for further development. Since the two processes both involve the process of combining two companies, the use of the two terms has become increasingly blended. Instead of using merger or acquisition separately, the process of corporate combinations is just described as merger and acquisition (M&A) transactions.
