Terminating Simple IRA mid-year with SH 401k 'established and maintained"

Is the new SECURE 2.0 requirement that allows employers to terminate a Simple IRA mid year but only if the employer “establishes and maintains (as of the day after the termination date)” a SH 401k plan to replace the terminated Simple IRA arrangement intended to cover M&A situations (where the SH 401k plan is maintained by Buyer and has been in existence long before the SIMPLE IRA)?   Or does the employer need to initially “establish” the SH 401k plan as of the day after the SIMPLE IRA termination date to rely on this mid-year termination exception?

Thanks.  Apologies if this is addressed elsewhere on the Board.