US: Halliburton blames US regulators for failed deal

Halliburton’s chief executive has blamed an increasingly difficult US regulatory climate for the collapse of his company’s $28bn bid for rival Baker Hughes, which was abandoned on Sunday, reports FT.

Speaking to analysts on a call on Tuesday morning Dave Lesar, who has led Halliburton since 2000, said that although the two oil services groups had expected to face scrutiny from competition regulators, “things have changed a bit”.

He also cited the “abrupt and deep downturn” in the oil services market, which meant that Halliburton would have been forced to make any disposals required by regulators at fire-sale prices.

Activity in the oil industry has continued to decline this year, with the number of rigs drilling for oil and gas onshore in the US today 23 per cent below its average in the first quarter.

The failure of the Baker Hughes deal means Halliburton has to pay a $3.5bn break fee, promised when the deal was agreed in November 2014.

Full Content: Financial Times

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