Halliburton, Baker Hughes Plan More Divestitures for Deal Approval

Halliburton, Baker Hughes Plan More Divestitures for Deal Approval
Halliburton and Baker Hughes will sell additional businesses in connection with Halliburton's pending acquisition of its smaller rival.

Reuters

Sept 28 (Reuters) - Oil services provider Halliburton Co and Baker Hughes Inc will sell additional businesses in connection with Halliburton's pending acquisition of its smaller rival, the companies said in a joint statement.

Halliburton's proposed acquisition of Baker Hughes ran into regulatory hurdles with the U.S. antitrust enforcers who believe the $35 billion merger will lead to higher prices and less innovation.

Halliburton said in April that it would sell three of its drilling businesses and on Monday said it had received proposals from multiple interested parties for each business.

Halliburton also said it would additionally divest its expandable liner hangers business, while Baker Hughes will divest three businesses.

Baker Hughes will divest its core completions business, its sand control business in the Gulf of Mexico and its offshore cementing businesses in Australia, Brazil, the Gulf of Mexico, Norway and the United Kingdom.

The companies also said they have agreed with the U.S. Department of Justice to further extend by three weeks the earliest closing date of the department's review.

Now, the review will, at the earliest, close on the later of Dec. 15 - from the current date of Nov. 25 - or 30 days after the date on which the two companies fully comply with the DOJ's second request.

(Reporting by Sweta Singh and Anannya Pramanick in Bengaluru; Editing by Savio D'Souza)

Copyright 2017 Thomson Reuters. Click for Restrictions.

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