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US: Halliburton faces deadline in $28 billion Baker deal

By  |  May 1, 2016

Halliburton Co. and Baker Hughes Inc. have until the end of Saturday to obtain antitrust approval from regulators or either side can walk away from a deal matching the world’s No. 2 and No. 3 oil service firms.

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    If the $28 billion deal fails, Halliburton must pay Baker Hughes a $3.5 billion termination fee. Halliburton Co. sold $7.5 billion in notes in November, which built up its cash reserve to a record of more than $10 billion — a stockpile that will help cover the fee.

    Halliburton announced the Baker Hughes takeover in November 2014 in a bid to better compete against industry leader Schlumberger Ltd. The US Justice Department had filed a lawsuit in early April to stop the merger, saying it threatens to eliminate head-to-head competition in 23 products and services used in oil exploration.

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