Nacogdoches business taken over by international owners - KTRE.com | Lufkin and Nacogdoches, Texas

Nacogdoches business taken over by international owners

NACOGDOCHES, TX (KTRE) -

Earlier this week Ireland based Eaton Corporations announced its purchase of Cooper industries for over $11 billion.

The merger makes at least the third large manufacturing plant in Nacogdoches to have foreign owners.

Cooper Power will become Eaton with corporate bosses in Ireland.

Foreign ownership happened to Pilgrim's Pride when a Brazilian company saved the financially strapped business.

And Norbord remains strong in Nacogdoches under Canadian ownership.

These days a company headquarters can be anywhere in the world.

"The days of, you know, of having all of your prospects and all of your business being right down the road, those days are long gone," NEDCO President Bill King.

"Yes, the global economy is going to require that we get used to the fact that the entity down the street might be owned by an American or might be owned by foreign interest," said SFA Professor of economics Dr. Michael Stroup.

But why are company's leaving the United States?

The news service Reuters reports Eaton is utilizing a complicated corporate structure to take advantage of the country's low corporate tax rate.

Another reason foreign investors are seeking out American companies is the economy in their own country isn't all that great.

"When the rates of return are higher in the United States economy then they are in their home economy then they're going to be more interested in investing in U.S. Business and that foreign investment can often create jobs much like Japanese auto makers making pickup trucks in Texas," said Stroup.

Cooper's new Irish owner follows a growing trend. The Chicago Tribune reports at least seven U.S. companies recently sold or merged and relocated to lower tax countries.

 East Texas could be internationally bound once again.

Copyright 2012 KTRE. All Rights Reserved.

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