The document summarizes a proposed merger between Scoop Move Facilitate LLC, a US-based aggregate supply company operating in Saudi Arabia, and CK's Hauling Service, a Saudi Arabia-based company that specializes in transporting aggregate products. The merger is proposed to increase market share in Saudi Arabia, prevent Scoop Move from closing, sustain the local economy, and combine resources. However, it may also lead to layoffs, higher consumer prices, less diversity, and increased costs. There are also concerns about how the merger may diminish Scoop Move's public view given CK's history of human rights violations and differences in business ethics and culture between the two companies.

1. Scoop Move Facilitate LLC
&
CK’s Hauling Service
Merger Rationalle Explained, by Matt Walker

2. Scoop Move Facilitate LLC
Scoop Move Facilitate LLC is a family-owned and operated U.S. based
aggregate supply company that operates in Saudi Arabia. SMF manages a
fleet of two dump trucks and excavating equipment that transports various
stone, sand, gravel, and other aggregate products.
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3. CK’s Hauling Service
CK’s Hauling Service is a Saudi Arabia Based company that specializes in
sand, gravel, crushed stone, and other aggregate products. The company
maintains a robust loyal client base. CK operates an extensive fleet of
modern cutting equipment to fulfill the needs of any customer. The
company has experience completing large scale products such as oil
drilling projects with Halliburton and British Petroleum.
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4. Merger
- CK’s Hauling Service has been a direct competitor with Scoop
Move Facilitate for several years. The two companies have been
rivals in Saudi Arabia. In the past Scoop Move Facilitate LLC has
been dominated by CK’s Hauling Service reputation of being a
premier leader in the region for construction projects.
- Merging the two companies will be horizontal in nature
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5. Merger Advantages
- Increased market share within Saudi Arabia
- Prevents closing of the inferior U.S. based Scoop Move Facilitate LLC
- Sustain local economy
- Maintain employees
- Combine resources
- Expansion
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6. Merger Disadvantages
- Layoffs of employees
- Raises market prices to the consumer
- Less market diversity
- Increase cost
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7. Social Implications of Merging
- CK’s Hauling Service has been known to violate human rights. Public
view of the U.S. bases Scoop Move Facilitate LLC will diminish.
- Differences in business ethics
- Social practices and culture differences
- Changes in accountability and transparency
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8. References
Human Rights Watch (2008). Perpetual Minors: human rights abuses from male guardianship and sex
segregation in Saudi Arabia. p. 2.
“Saudi Arabia: No women on Asian Games Team". Human Rights Watch. Human Rights Watch. 18
September 2014.
Hill, C., Jones, G., & Schilling, M. (2020). Strategic management theory: An integrated approach (13th
ed). Cengage Learning
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