Watching the markets closely and also thinking through ramifications of the progressing oilfield servicing acquisition thats getting a lot of attention recently. Im characterising this one as potentially playing out as a bit of a paradox..... and potential problem. Key benefit of a merger or acquisition of another company is clearly in the domain of cost savings in overhead costs, rationalising support structures and the optimal exploitation of combined technologies for increasing competitive market share aims. (Increasing revenue, profit and shareholder value). In addition, context is also a serious trigger for change ....reducing oil prices (current global economic situation) means the acquisition MAY position the combined organisation in a better place to withstand this trend... But.... and this is where the paradoxical idea comes in..... What happens and what are the ramifications for both parties concerned, if any divesting of technologies (as per any monopoly commission requirements), results in a non buyer for those technologies?..... And\or....... a change of buyer heart emerges in forcing a cheaper technology selling price that may not be acceptable because of a continuing slump in the price of oil? It is interesting that the very reason for the acquisition in the first place might turn out to be the same reason as to why the process might run into problems and possibly be withdrawn. (Big gamble and lots of money at stake). The holistic question is this (and any prospective buyers of those technologies will for sure ask the same question) ... Where is the future of fossil fuels going?, when will we begin to see more aggressive shifts to cleaner forms of energy and why are some of the worlds most richest institutions already taking action on the departure from fossil fuel investment? Its going to be a very interesting year ahead! theguardian/environment/2014/sep/22/rockefeller-heirs-divest-fossil-fuels-climate-change bbc.co.uk/news/uk-29547137 bbc.co.uk/news/world-us-canada-29310475
Posted on: Wed, 03 Dec 2014 23:33:07 +0000
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