Suspension of merger negotiations

Citation

(2000), "Suspension of merger negotiations", Anti-Corrosion Methods and Materials, Vol. 47 No. 4. https://doi.org/10.1108/acmm.2000.12847dab.005

Suspension of merger negotiations

Keywords NACE, SSPC

On Saturday, 17 June 2000, the NACE International Board of Directors met to discuss the NACE/SSPC merger task group proposal. This proposal was the product of a joint effort of a task group composed of members from both organizations. The NACE Board voted to reject the proposal and to suspend further negotiations at this time. This vote follows a two-year effort by representatives of both organizations. Merger negotiations began with joint task groups evaluating whether current members could be better served by a single organization.

Although the benefits of a merger appear to outweigh the disadvantages, it became increasingly clear during the negotiation process that the operating philosophies of the two organizations are very different. The SSPC Board of Governors considered the same merger proposal two weeks ago and chose not to vote until additional issues were resolved. In a letter dated 9 June 2000 to the NACE President, the SSPC President identified some specific problem areas with the merger proposal. The NACE Board was not comfortable with many of the recommendations expressed in the task group proposal. Coupled with the additional issues outlined in the SSPC letter, the NACE Board voted down the merger proposal.

Further discussion by the NACE Board made it clear that NACE and SSPC are still very far apart in the merger negotiations. Additional efforts toward a merger probably will not narrow the gap significantly. The NACE Board will actively pursue other alternatives to benefit members in the protective coatings industry.