C&J Energy Can Proceed With $2.86 Billion Nabors Merger

C&J Energy Services Inc. can proceed with its $2.86 billion merger with a unit of Nabors Industries Ltd. to lower its tax liability, an appeals court ruled, rejecting claims the deal amounted to a secret sale of the oil-services firm.

C&J Energy’s shareholders shouldn’t have been barred by a judge from voting on whether to approve the deal with Houston-based Nabors, the Delaware Supreme Court ruled today. C&J Energy’s directors weren’t obliged to shop around for other offers for the company even though Nabors will wind up with a controlling stake in the new entity, the court said.