Merge or terminate SHNEC Plan In Corporate Transaction

[PMC]

Company A has a non-safe harbor 401(k). Company B has a safe harbor (3% nonelective) 401(k). Company A purchased Company B (still remain as separate entity) and want to merge CO. B's Plan into Company A mid plan year (calendar year for both).

Can CO. B's plan even merge into CO.A's? Understand that CO. B can cease the SHNEC only if they prove substantial business hardship or terminate their Plan due to a 410(b)(6)© transaction (and fund the SHNEC up until that time and test). Proving substantial business hardship doesn't appear to be a possibility so that leaves termination.

If CO. B terminates their Plan are they REQUIRED to offer participants distributions, or can the Plan fiduciary decide the CO. B Plan assets will be transferred to CO. A Plan?

And if distributions are required then I assume there is no problem in CO. B participating in CO.A Plan within 12 months of distribution because of the Corporate transaction?