NEW YORK: Hallib-urton, the world’s second biggest oil services company, will acquire rival Baker Hughes for $34.6bn in cash and equity, the two companies announced yesterday.
“We are pleased to announce this combination with Baker Hughes, which will create a bellwether global oilfield services company and offer compelling benefits for the stockholders, customers and other stakeholders of Baker Hughes and Halliburton,” Dave Lesar, Halliburton’s chief executive, said.
Martin Craighead, the Chairman and CEO of Baker Hughes, said that the deal would create “a larger, more competitive global company”. The tie-up of the world’s second and third largest oil services companies would create a new energy behemoth.
Both companies are based in Houston, Texas, and overlap in many activities and many areas, which would allow for productivity gains after a restructuring is carried out. Recent news reports have said that the merged company would rise to the top global ranks in several sectors including fracking.
AFP
