The Halliburton Company (NYSE:HAL) and Baker Hughes deal has reached a critical stage. The former is likely to meet European Union (EU) regulatory authorities and receive the US Department of Justice’s (DoJ) final verdict on the merger in the coming week. Citing people familiar with the matter, Bloomberg reports that Halliburton proposed a selloff of its assets to quell the DoJ\'s concerns in a recent meeting with Head of the Department, Bill Baer.
The $34.6 billion deal between the two energy giants, Baker Hughes Incorporated (NYSE:BHI) and Halliburton, has come under fire from regulators. The failure of the merger will affect Baker Hughes, the world’s no. 3 player in the industry the most, Bloomberg reports. Although Baker Hughes will receive $3.5 billion in termination fees, this will not be enough to ease pressure from low crude oil prices on its balance sheet and stock performance.
Facebook Inc (FB) has received clearance from a European Union (EU) body for its acquisition of WhatsApp— The biggest undertaken by the social media giant in its decade-long history. The news is an unconditional win for Facebook as it can now avoid any sort of antitrust issue in 28 EU countries.
The US Department of Justice (DoJ) has requested Halliburton Company (NYSE:HAL) and Baker Hughes Incorporated (NYSE:BHI) regarding the possible tie-up between the two companies. This was the second request made by the antitrust regulators for additional information.
Royal Dutch Shell plc (NYSE:RDS.A) and BG Group plc’s proposed $70 billion merger is in the last phase of the review process. The acquisition deal has already received the green signal from the US, Australia, European Union (EU), and Brazilian competition-maintaining authorities; it still awaits approval from China’s Ministry of Commerce (MOFCOM) and Australia’s Foreign Investment Review Board (FIRB).
By Helix Investment Management:When a company announces that it is being bought, usually that is the end of a stock's run, since there is nothing left to drive any meaningful upside. There may be an opportunity for some merger arbitrage, but that is it. However, NYSE Euronext (NYX) is presenting investors with a unique opportunity.