Halliburton and Baker Hughes extend merger deadline

Halliburton1The combined company will be called Halliburton and continue to be traded on the New York Stock Exchange under the ticker symbol HAL. (Image source: RD the Milkman/Flickr)Halliburton and Baker Hughes have entered a timing agreement with the US Department of Justice (DOJ) to extend the period for the review of a buy-in

The time has been extended to 25 November 2015, which is 90 days after both companies have certified substantial compliance with the second request.

The transaction was expected to close in the second half of 2015.

Under the terms of the definitive agreement, Halliburton will acquire all the outstanding shares of Baker Hughes in a stock and cash transaction. The transaction is valued at US$78.62 per Baker Hughes share, representing an equity value of US$34.6bn and enterprise value of US$38bn.

Timing agreements are often entered into in connection with large, complex transactions, and provide the DOJ additional time to review responses to its second requests. In light of the timing agreement, Halliburton and Baker Hughes also have agreed to extend the time period for closing of the acquisition to no later than 1 December 2015.

Halliburton and Baker Hughes continue to be in discussions with the DOJ, the European Commission and other competition enforcement authorities with respect to the acquisition. As previously announced, Halliburton is currently marketing for sale its fixed cutter and roller cone drill bits, directional drilling and logging-while-drilling (LWD)/measurement-while-drilling (MWD) businesses.

In addition, Halliburton has shared, with various competition enforcement authorities, a proposal to divest additional businesses of the companies which, together with the previously announced divestitures, are within the scope of those contemplated by Halliburton at the time of the transaction.


Halliburton and Baker Hughes merge in US$34.6bn deal

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

twn Are you sure that you want to switch to desktop version?