In the fourth quarter of fiscal 2015 (4QFY15), Halliburton Company (NYSE:HAL) provided an update on its pending merger with Baker Hughes. Earlier this month, Halliburton presented an enhanced asset divestiture plan to the US Department of Justice (DoJ) to allay its concerns, mentioned below. The proposal was also presented to the European Union (EU) Commission and other regulatory authorities.
According to Reuters, Halliburton Company has refiled its $35 billion bid to take over Baker Hughes Incorporated (NYSE:BHI). It first filed the proposal four months ago, but faced rejection a few days later over “incomplete information.” If the Commission finds the information to be sufficient this time, it will give its final verdict by January 2015.
Halliburton Co. and Baker Hughes Inc., the oilfield-services companies that agreed to merge in November, reported higher earnings for the last quarter of 2014 as they prepare for a downturn in the industry.
On Monday, Halliburton Company (NYSE:HAL) revealed details of the “sometimes tensed” merger deal between itself and Baker Hughes Incorporated (NYSE:BHI). The main source of concern was disagreements over pricing regulatory issues.
The deal between Halliburton Company (NYSE:HAL) and Baker Hughes Incorporated (NYSE:BHI) was confirmed on November 17. The $34.6 billion deal is the fourth-largest deal in the past four years, among all deals worth more than $10 billion.
Halliburton Co., the world’s second- biggest provider of oilfield services, agreed to buy No. 3 Baker Hughes Inc. in one of the largest takeovers of a U.S. energy company in years.
Baker Hughes shareholders will receive 1.12 Halliburton shares plus $19 in cash for each share they own, the companies said today in a joint statement. Halliburton plans to finance the deal through a combination of cash on hand and debt financing.
CALGARY – The blockbuster deal unfolding between Baker Hughes Inc. and Halliburton Co. will shake up the Canadian oil field services market – creating a firm large enough to disrupt the dominance of domestic pressure pumpers, industry experts said Friday.
Baker Hughes confirmed this week that it is in “preliminary discussions” with long-time rival Halliburton about a merger between the two Texas-based oil field service giants. A combined Baker Hughes/Halliburton is still not expected to rival the world’s largest oil field services firm, Schlumberger Ltd.
By CFA Institute Contributors:
By Filip Mardjokic, CFA
By this time of year, we have seen more than a few forecasts and commentaries about what the market is likely to do over the next few years. I’d like to take something of a different approach: offer a view into where consensus is forming and discuss some of the risks these forecasts are predicated on.
Halliburton has agreed to plead guilty to destruction of evidence in the Deepwater Horizon oil drilling tragedy. The plea deal — which is still subject to court approval — means they'll pay the maximum available statutory fine and be subject to three years probation.