Mergers and acquisitions occur across many industry segments in the United Sates and around the world. What makes a successful merger/acquisition? Why do mergers and acquisitions? These are all important questions in any discussion of mergers and acquisitions. In this case presented in this paper, we'll discuss a merger/acquisition between two Fortune 500 utility companies. We'll address some of the processes that were used, the desired outcome of this merger/acquisition and finally ask whether this merger/acquisition was successful in terms of combining two separate health and safety organizations/programs.
One thing to note in a review of merger and acquisitions across many industries is that all the desired synergies may not realized in the short term. The merger/acquisition must be evaluated in more of a longer-term perspective due to the enormous impacts that mergers and acquisitions have on the affected organizations. Sometimes the maturation and evolution cycles will reveal how successful or unsuccessful a merger or acquisition is. The case presented in this analysis is still in the evolution and maturation cycle in various operations of these two former companies. Practices, cultures and business ideals simply do not change overnight. That is why for any merger/acquisition, a well thought framework and systematic approach is required to achieve any measure of success. Otherwise, without such an approach, the merger/acquisition is less likely to achieve the desired results and ultimately affect those companies' customers, stockholders and its employees.
Hopefully, in this analysis, this will demonstrate that this merger/acquisition was successful in terms of the health and safety function and the sub-functions associated with health and safety.
In December 2000, Carolina Power and Light (CP &L) acquired Florida Progress Corporation (FPC) in a 3.5 billion-dollar acquisition. Carolina Power and Light was a traditional electric and gas utility with some diversified holdings. Florida Progress was also a diversified company with its primary subsidiary being Florida Power Corporation. Florida Power was also an operating utility engaged in the generation, purchase, transmission, distribution and sale of electricity in Florida.
The combined company created a super-regional energy provider serving 2.5 million customers in a 50,000 square-mile retail service area in North Carolina, South Carolina and Florida. The now named Progress Energy has total revenues of $6.7 billion and 2.5 million customers throughout North Carolina, South Carolina and Florida. Both predecessor companies were Fortune 500 companies with the combined company becoming a Fortune 250 company.
The Carolina Power & light company was formed in 1900 as an investor-owned utility. The initial region of this company's service area was the Raleigh, NC area. In 1926, the Carolina company expanded and acquired the Yadkin River Power Company, Asheville Power & Light Company, and the Pigeon River Power Company to become Carolina Power & Light.
