How does a merger affect L-1B?

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Old Aug 20th 2007, 6:03 pm
  #1  
-Saurabh
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Default How does a merger affect L-1B?

My current employer may be looking at merging its US entity (L-1B is
through this US company) with another company (bigger/larger). Does
that forfeit my employment with the US employer? Is my L-1B rendered
void, invalid after the merger. I am assuming that the US entity will
be absorbed and its operations directed, owned by the larger company.
Any comments, feedback, suggestions, answers would be highly
appreciated.
Cheers,
Saurabh
 
Old Aug 22nd 2007, 10:58 am
  #2  
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Default Re: How does a merger affect L-1B?

Originally Posted by -Saurabh
My current employer may be looking at merging its US entity (L-1B is
through this US company) with another company (bigger/larger). Does
that forfeit my employment with the US employer? Is my L-1B rendered
void, invalid after the merger. I am assuming that the US entity will
be absorbed and its operations directed, owned by the larger company.
Any comments, feedback, suggestions, answers would be highly
appreciated.
Cheers,
Saurabh
Our US parent is being bought out by a bigger US company at the end of the year. I have been told that because the buying company is buying the parent and all its sub-sidurys, there will be no problem with my L1-B visa. Both our HR dept and the Lawyer has told me this. They said because the relationship between the US and the UK company will remain the same - the visa will still be valid. Hope this helps.
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Old Aug 23rd 2007, 9:39 am
  #3  
-Saurabh
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Default Re: How does a merger affect L-1B?

On Aug 22, 3:58 pm, dh010447 <[email protected]>
wrote:
> > My current employer may be looking at merging its US entity (L-1B is
> > through this US company) with another company (bigger/larger). Does
> > that forfeit my employment with the US employer? Is my L-1B rendered
> > void, invalid after the merger. I am assuming that the US entity will
> > be absorbed and its operations directed, owned by the larger company.
> > Any comments, feedback, suggestions, answers would be highly
> > appreciated.
> > Cheers,
> > Saurabh
>
> Our US parent is being bought out by a bigger US company at the end of
> the year. I have been told that because the buying company is buying the
> parent and all its sub-sidurys, there will be no problem with my L1-B
> visa. Both our HR dept and the Lawyer has told me this. They said
> because the relationship between the US and the UK company will remain
> the same - the visa will still be valid. Hope this helps.
>
> --
> Posted viahttp://britishexpats.com

That certainly does help. My L-1B carries the name of the US entity so
I was wondering if this entity merges to form another entity, by
logical reasoning, my visa would be invalid. Can anyone site any
instances of something like this happening? Thank you dh010447 for
your reply.
 
Old Aug 23rd 2007, 11:20 pm
  #4  
J. J. Farrell
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Default Re: How does a merger affect L-1B?

On Aug 23, 10:39 am, Saurabh <[email protected]> wrote:
> On Aug 22, 3:58 pm, dh010447 <[email protected]>
> wrote:
>
> > > My current employer may be looking at merging its US entity (L-1B is
> > > through this US company) with another company (bigger/larger). Does
> > > that forfeit my employment with the US employer? Is my L-1B rendered
> > > void, invalid after the merger. I am assuming that the US entity will
> > > be absorbed and its operations directed, owned by the larger company.
> > > Any comments, feedback, suggestions, answers would be highly
> > > appreciated.
>
> > Our US parent is being bought out by a bigger US company at the end of
> > the year. I have been told that because the buying company is buying the
> > parent and all its sub-sidurys, there will be no problem with my L1-B
> > visa. Both our HR dept and the Lawyer has told me this. They said
> > because the relationship between the US and the UK company will remain
> > the same - the visa will still be valid. Hope this helps.
>
> That certainly does help. My L-1B carries the name of the US entity so
> I was wondering if this entity merges to form another entity, by
> logical reasoning, my visa would be invalid. Can anyone site any
> instances of something like this happening? Thank you dh010447 for
> your reply.

I believe this depends on details of precisely what happens to the
various companies and the relationships between them. Don't assume
that dh010447's experience is applicable to you. This is something you
need to discuss with the company's immigration lawyers once they know
exactly what transactions are happening between the various companies.
If your employer is selling the USA part of its operation, then the
relationship between the USA operation and the rest of the company is
almost certainly changing in a big way. This could well make your L-1
invalid.
 
Old Aug 24th 2007, 8:29 am
  #5  
-Saurabh
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Default Re: How does a merger affect L-1B?

On Aug 24, 4:20 am, "J. J. Farrell" <[email protected]> wrote:
> On Aug 23, 10:39 am, Saurabh <[email protected]> wrote:
>
>
>
>
>
> > On Aug 22, 3:58 pm, dh010447 <[email protected]>
> > wrote:
>
> > > > My current employer may be looking at merging its US entity (L-1B is
> > > > through this US company) with another company (bigger/larger). Does
> > > > that forfeit my employment with the US employer? Is my L-1B rendered
> > > > void, invalid after the merger. I am assuming that the US entity will
> > > > be absorbed and its operations directed, owned by the larger company.
> > > > Any comments, feedback, suggestions, answers would be highly
> > > > appreciated.
>
> > > Our US parent is being bought out by a bigger US company at the end of
> > > the year. I have been told that because the buying company is buying the
> > > parent and all its sub-sidurys, there will be no problem with my L1-B
> > > visa. Both our HR dept and the Lawyer has told me this. They said
> > > because the relationship between the US and the UK company will remain
> > > the same - the visa will still be valid. Hope this helps.
>
> > That certainly does help. My L-1B carries the name of the US entity so
> > I was wondering if this entity merges to form another entity, by
> > logical reasoning, my visa would be invalid. Can anyone site any
> > instances of something like this happening? Thank you dh010447 for
> > your reply.
>
> I believe this depends on details of precisely what happens to the
> various companies and the relationships between them. Don't assume
> that dh010447's experience is applicable to you. This is something you
> need to discuss with the company's immigration lawyers once they know
> exactly what transactions are happening between the various companies.
> If your employer is selling the USA part of its operation, then the
> relationship between the USA operation and the rest of the company is
> almost certainly changing in a big way. This could well make your L-1
> invalid.- Hide quoted text -
>
> - Show quoted text -

I see. So you are saying that L-1 valid or not depends entirely on how
the deal/merger is worked out. It does seem like the existing entity
would continue to operate normally, but its operations would be part
of a larger entity, so I am assuming there'd be a title change.
 
Old Aug 24th 2007, 12:56 pm
  #6  
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Default Re: How does a merger affect L-1B?

I got very worried when I found out that our company was being bought out because of the company's name on my visa.

This was my main concern as I assumed that if the company didn't exist as an entity anymore, then the visa would be invalid because you are only allowed to work for the company that petitioned for you.

From what I was told by the Lawyer and out HR dept - because the larger US company is buying the US parent and all its worldwide subsidiaries (I work at one of the UK subsidiaries) then the relationship still exists between the US and the UK and therefore the visa remains valid.

Might not be the same situation as J.J. says and if you have any issues I would deffinatly give your immigration lawyer a ring. For them its probably a simple question and might be able to put your mind at ease fairly quickly.
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Old Aug 24th 2007, 4:27 pm
  #7  
J. J. Farrell
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Default Re: How does a merger affect L-1B?

On Aug 24, 1:56 pm, dh010447 <[email protected]>
wrote:
> > On Aug 24, 4:20 am, "J. J. Farrell" <[email protected]> wrote:
> > > On Aug 23, 10:39 am, Saurabh <[email protected]> wrote:
>
> > > > On Aug 22, 3:58 pm, dh010447 <[email protected]>
> > > > wrote:
>
> > > > > > My current employer may be looking at merging its US entity
> > > > > > (L-1B is
> > > > > > through this US company) with another company (bigger/larger).
> > > > > > Does
> > > > > > that forfeit my employment with the US employer? Is my L-1B
> > > > > > rendered
> > > > > > void, invalid after the merger. I am assuming that the US
> > > > > > entity will
> > > > > > be absorbed and its operations directed, owned by the larger
> > > > > > company.
> > > > > > Any comments, feedback, suggestions, answers would be highly
> > > > > > appreciated.
>
> > > > > Our US parent is being bought out by a bigger US company at the
> > > > > end of
> > > > > the year. I have been told that because the buying company is
> > > > > buying the
> > > > > parent and all its sub-sidurys, there will be no problem with my
> > > > > L1-B
> > > > > visa. Both our HR dept and the Lawyer has told me this. They
> > > > > said
> > > > > because the relationship between the US and the UK company will
> > > > > remain
> > > > > the same - the visa will still be valid. Hope this helps.
>
> > > > That certainly does help. My L-1B carries the name of the US
> > > > entity so
> > > > I was wondering if this entity merges to form another entity, by
> > > > logical reasoning, my visa would be invalid. Can anyone site any
> > > > instances of something like this happening? Thank you dh010447 for
> > > > your reply.
>
> > > I believe this depends on details of precisely what happens to the
> > > various companies and the relationships between them. Don't assume
> > > that dh010447's experience is applicable to you. This is something
> > > you
> > > need to discuss with the company's immigration lawyers once they
> > > know
> > > exactly what transactions are happening between the various
> > > companies.
> > > If your employer is selling the USA part of its operation, then the
> > > relationship between the USA operation and the rest of the company
> > > is
> > > almost certainly changing in a big way. This could well make your
> > > L-1
> > > invalid.- Hide quoted text -
>
> > > - Show quoted text -
>
> > I see. So you are saying that L-1 valid or not depends entirely on how
> > the deal/merger is worked out. It does seem like the existing entity
> > would continue to operate normally, but its operations would be part
> > of a larger entity, so I am assuming there'd be a title change.
>
> I got very worried when I found out that our company was being bought
> out because of the company's name on my visa.
>
> This was my main concern as I assumed that if the company didn't exist
> as an entity anymore, then the visa would be invalid because you are
> only allowed to work for the company that petitioned for you.
>
> From what I was told by the Lawyer and out HR dept - because the larger
> US company is buying the US parent and all its worldwide subsidiaries (I
> work at one of the UK subsidiaries) then the relationship still exists
> between the US and the UK and therefore the visa remains valid.

Exactly. There was no fundamental change in your situation, just a
common change in ownership which applied to both the non-USA company
you had worked for previously and your USA company. The relationship
between the USA company and the one you had transferred from remained
identical. This is about as simple and straightforward a case as you
can get - it many ways it was just the company changing its name.

> Might not be the same situation as J.J. says and if you have any issues
> I would deffinatly give your immigration lawyer a ring. For them its
> probably a simple question and might be able to put your mind at ease
> fairly quickly.

In Saurabh's case it sounds like the group is selling off the USA
company. This would affect the relationship between the two relevant
companies, and is more likely to cause issues for L-1 holders. It
needs an opinion from an immigration lawyer who knows all the details
of what is changing between the various companies.
 

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