By Angela Chen
Halliburton Co. has agreed to buy oil field company Baker Hughes
Inc. in a stock-and-cash deal valued at $34.6 billion after weeks
of discussions.
Halliburton's $78.62-a-share offer has an enterprise value of
$38 billion, based on Halliburton's closing price on Nov. 12. Upon
completion, Baker Hughes shareholders will own about 36% of the
combined company.
The deal comes after weeks of discussions turned hostile. The
Wall Street Journal reported last week that Halliburton and Baker
Hughes were in talks. The deal would help the big oil-field
services companies contend with falling oil prices. Halliburton
made its initial proposal to Baker Hughes on Oct. 13.
Halliburton intends to finance the cash portion of the
acquisition through a combination of cash on hand and fully
committed debt financing. If required by regulators, Halliburton
will divest businesses that generate up to $7.5 billion in
revenues, and will pay a $3.5 billion termination fee if the
transaction fails due to regulatory problems.
The transaction is expected to close in the second half of
2015.
On a pro forma basis, the combined company had 2013 revenues of
$51.8 billion, more than 136,000 employees and operations in more
than 80 countries around the world.
The new company will have a combined board of 15 members,
including three from the Baker Hughes board. Halliburton Chief
Executive Dave Lesar will continue as CEO.
Write to Angela Chen at angela.chen@dowjones.com
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