Halliburton Executive: Baker Hughes Deal Likely To Close In 2016
HOUSTON, Dec 9 (Reuters) - Oilfield services company Halliburton's proposed $35 billion acquisition of rival Baker Hughes Inc will likely close in 2016 instead of this year as talks with U.S. regulators continue, a Halliburton executive said on Wednesday.
The companies have already agreed to divest $5.2 billion in overlapping businesses to quell concerns the merger would lead to higher prices and less innovation.
"Currently we are having substantive discussions with the (Department of Justice)," Christian Garcia, Halliburton's acting chief financial officer told Wells Fargo's Energy Symposium. "Depending on the outcome of these discussions and the remedies that may be required, there is strong likelihood that the closing of the transaction will slide to 2016."
Garcia said the companies were confident that the deal would be approved.
Halliburton is "finalizing negotiations" with buyers for the drilling businesses it first announced it would divest, Garcia said.
The deal, which would create the second-largest oilfield services company behind Schlumberger Ltd has so far won regulatory approvals in South Africa, Turkey, Colombia, Canada and Kazakhstan. Approvals from antitrust officials in other countries, including Australia and Brazil, were pending.
The proposed merger, first announced in 2014, was originally expected to close in late November, but U.S. regulators requested more information from the companies. That request extended the earliest closing date to Dec. 15.
(Reporting by Anna Driver; Editing by Terry Wade and Grant McCool)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Halliburton Posts International Revenue Growth, Unlike Schlumberger (Oct 23)
- Halliburton CEO Defends Fracking Business as Margins Disappoint (Oct 23)
- Venezuela's IOUs Pile Up, Keeping US Oil Servicers in Tow (Aug 23)
Company: Baker Hughes more info
- Baker Hughes: Oil Drillers In Canada Boost Rigs To 10-Month High (Jan 12)
- Baker Hughes: US Oil Rig Count Ends 2017 40% Above Year-Ago Levels (Dec 29)
- Baker Hughes: US Drillers Add The Most Oil Rigs In A Week Since June (Nov 10)