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US: Halliburton, Baker overcome merger scuffles

 |  November 17, 2014

Oilfield service rivals Halliburton and Baker Hughes have overcome the rumored disagreements over terms of a proposed merger and agreed to a deal, reports said Monday.

Halliburton will reportedly acquire Baker Hughes for $34.6 billion in cash and stock.

The deal highlights just how impactful falling oil prices can be on the industry, according to reports. Reduced gas costs have forced reductions in oil drilling efforts, leaving Halliburton and Baker Hughes scrambling.

Halliburton Chairman and CEO Dave Lesar announced the merger Monday, adding that the partnership will allow the companies to reduce costs by $2 billion a year.

The deal will face antitrust scrutiny, but Halliburton said it is willing to divest up to $7.5 billion worth of assets to successfully complete the deal. The company seems confident in that success as it has agreed to a $3.5 breakup fee with Baker Hughes, reports say.

Full content: ABC News

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