Company Afloat For 100 Plus Years Plans Business Structure Change
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Mergers & Acquisitions on Friday, April 20, 2018.
California business owners who are currently facing financial or legal problems (or both) may want to follow a developing story regarding a proposed acquisition. An auto industry supplier that first opened its doors more than a century ago is planning to undergo a major business structure change. In this particular situation, Tenneco, Inc. has plans to acquire Federal-Mogul in the hope of blending performance and profitability potential from both companies into one.
These business structure change ideas arose after Federal-Mogul struggled to stay on its feet following several asbestos litigation cases as well as bankruptcy proceedings. The projected deal is valued at approximately $5.4 billion. The first part of the acquisition plan is scheduled to take place this year to the tune of $800 million in cash plus tens of millions of Tenneco shares.
Tenneco, Inc. has also agreed to assume Federal-Mogul's debt. As with all major mergers and acquisitions, these two companies must await regulatory approval before actualizing their proposed agreement. Depending on the details of a particular proposed plan, such proceedings may take several months or longer.
Signing an acquisition agreement with one or more parties may be a viable option for California business owners whose current situations suggest that continuing along their present paths may not be in their own best interests. When so much is at stake, it is often best to rely on skilled business and commercial law guidance. The easiest and swiftest way to access such support is to request a meeting with an experienced business law attorney.