Two of the largest oil and natural gas service companies have merged in a stock and cash transaction worth about $34.6 billion. Halliburton Co. will acquire all the outstanding shares of Baker Hughes Inc. in a transaction that is expected to close in the second half of 2015. The boards of directors of both companies unanimously approved the agreement in November.
The merger combines two complementary suites of products and services into a comprehensive offering to oil and natural gas customers. Combined, the companies represented revenues of $51.8 billion in 2013 and employed more than 136,000 people who operated in more than 80 countries.
“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 Halliburton chairman and CEO Dave Lesar in a statement. “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.”
Baker Hughes chairman and CEO Martin Craighead said the deal makes the combined companies more competitive in the global energy market.
“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,” Craighead said. “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 subject to approvals from each company’s stockholders, regulatory approvals and customary closing conditions.
The combined company will maintain the Halliburton name and will be headquartered in Houston, Texas. Lesar will continue as chairman and CEO of the combined company. Following the completion of the transaction, the combined company’s board of directors is expected to expand to 15 members, three of whom will come from the board of Baker Hughes.Tags: Baker Hughes, Halliburton, mergers and acquisitions