Halliburton and Baker Hughes Plan More Divestiture For Deal Approval
Halliburton’s proposed acquisition of Baker Hughes ran into regulatory hurdles with the U.S. antitrust enforcers who believe the $35 billion merger will lead to higher prices and less innovation as reported by Reuters.
Halliburton said in April that it would sell three of its drilling businesses and on Monday said it had received proposals from multiple interested parties for each business.
Halliburton also said it would additionally divest its expandable liner hangers business, while Baker Hughes will divest three businesses.
Baker Hughes will divest its core completions business, its sand control business in the Gulf of Mexico and its offshore cementing businesses in Australia, Brazil, the Gulf of Mexico, Norway and the United Kingdom.
The companies also said they have agreed with the U.S. Department of Justice to further extend by three weeks the earliest closing date of the department’s review.
Now, the review will, at the earliest, close on the later of Dec. 15 – from the current date of Nov. 25 – or 30 days after the date on which the two companies fully comply with the DOJ’s second request.