Arab Today, arab today halliburton baker hughes call off merger
Last Updated : GMT 23:57:56
Arab Today, arab today
Arab Today, arab today

In the oil services business

Halliburton, Baker Hughes call off merger

Arab Today, arab today

Arab Today, arab today Halliburton, Baker Hughes call off merger

US oil services companies Halliburton and Baker Hughes have called off their proposed $34.6bn merger
San Francisco - Arab Today

US oil services companies Halliburton and Baker Hughes have announced they were calling off their massive multibillion-dollar proposed merger that had met strong resistance from regulators.

The deal, announced in November 2014, foresaw a $34.6 billion takeover by Halliburton of its rival, creating a powerful competitor to global industry leader Schlumberger.

"Challenges in obtaining remaining regulatory approvals and general industry conditions that severely damaged deal economics led to the conclusion that termination is the best course of action," Halliburton's chairman and chief executive, Dave Lesar, said in a joint statement.

Earlier this month, US antitrust officials filed suit to block the proposed merger, agreed to in response to plunging oil prices, saying it would eliminate competition, raise prices and reduce innovation in the oil services business.
The Justice Department said the transaction would eliminate head-to-head competition in markets for 23 products or services, creating a virtual duopoly for key oil services such as offshore well completions and on- and offshore cementing.

It said the merger would remove the incentives for two industry leaders to improve technology and that low oil prices did not justify a bad deal for consumers.

Halliburton and Baker Hughes -- the world's number two and three oil services companies, which provide well service and drilling products to large oil companies like ExxonMobil and Total -- said at the time they would "vigorously contest" the case.

They argued that the deal would provide customers with better access to top technology and lower the cost of producing oil.

- $3.5 bn termination fee -

Martin Craighead, chairman and chief executive of Baker Hughes, called the termination "disappointing."

"This was an extremely complex, global transaction and, ultimately, a solution could not be found to satisfy the antitrust concerns of regulators, both in the United States and abroad," he said. 

Halliburton will pay Baker Hughes a termination fee of $3.5 billion by Wednesday, according to the joint statement.

US Attorney General Loretta Lynch welcomed the deal's demise. 

"The companies' decision to abandon this transaction -- which would have left many oilfield service markets in the hands of a duopoly -- is a victory for the US economy and for all Americans," Lynch said in a statement.

"This case serves as a stark reminder that no merger is too big or too complex to be challenged."

The Justice Department said that before it filed suit, Halliburton had offered to divest certain assets in an effort to address its concerns. 

"According to the complaint, however, the proposal was inadequate because it did not include full business units, withheld many critical assets and personnel, involved numerous ongoing entanglements between the merged company and the divestiture buyer and generally failed to replicate the robust competition between the parties that exists today," it said.

Across the Atlantic, the European Commission in January had opened a probe into the merger, concerned that the move would increase oil and gas exploration costs resulting in higher energy prices in Europe.

In 2015, Halliburton had revenues of $23.6 billion, while Baker Hughes had revenues of $15.7 billion. Schlumberger's revenues were $35.5 billion.

Source :AFP

arabstoday
arabstoday

GMT 15:23 2017 Sunday ,24 September

Saudi Arabia to include low-cost Flyadeal

GMT 08:17 2017 Sunday ,24 September

Brexit weighs heavy at Irish farming fair

GMT 08:07 2017 Sunday ,24 September

Petrol prices pumped up in Pyongyang

GMT 08:45 2017 Saturday ,23 September

Russia keen on more OPEC cooperation

GMT 03:50 2017 Saturday ,23 September

Oil prices witness notable increase before OPEC meeting

GMT 07:01 2017 Friday ,22 September

Hack of US regulator a blow to confidence
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today halliburton baker hughes call off merger Arab Today, arab today halliburton baker hughes call off merger

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today halliburton baker hughes call off merger Arab Today, arab today halliburton baker hughes call off merger

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Taxi! Transport gets an overhaul

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Turkey warns of 'security' steps

GMT 12:17 2017 Sunday ,24 September

Turkey warns of 'security' steps
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Big Western brands polluting oceans

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:11 2017 Saturday ,23 September

Doctor provides advices to families

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday