More in

Halliburton and Baker Hughes agree US$34.6bn deal

Baker Hughes stockholders will receive 1.12 Halliburton shares as well as US$19.00 in cash for each share they own. When the transaction is completed, Baker Hughes stockholders will own approximately 36% of the combined company.

Halliburton is one of the world’s largest providers of products and services to the energy industry, while Baker Hughes supplies oilfield services, products, technology and systems, including submersible pump, progressing cavity pump and surface horizontal pumping systems and pressure pumping to the worldwide oil and natural gas industry. On a pro-forma basis the combined company had 2013 revenues of US$51.8 billion, more than 136 000 employees and operations in over 80 countries around the world.

“We are pleased to announce this combination with Baker Hughes, which will create a bellwether global oilfield services company and offer compelling benefits for the stockholders, customers and other stakeholders of Baker Hughes and Halliburton,” said Dave Lesar, chairman and CEO of Halliburton. “The transaction will combine the companies’ product and service capabilities to deliver an unsurpassed depth and breadth of solutions to our customers, creating a Houston-based global oilfield services champion, manufacturing and exporting technologies, and creating jobs and serving customers around the globe.”

Martin Craighead, chairman and CEO of Baker Hughes, said: “By combining two great companies that have delivered cutting-edge solutions to customers in the worldwide oil and gas industry for more than a century, we will create a new world of opportunities to advance the development of technologies for our customers. We envision a combined company capable of achieving opportunities that neither company would have realized as well – or as quickly – on its own, all while creating exciting new opportunities for employees.”

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

The combined company will maintain the Halliburton name and continue to be traded on the New York Stock Exchange under the ticker symbol “HAL.” Lesar will continue as chairman and CEO of the combined company which will be headquartered in Houston, Texas.