Halliburton, Baker Hughes to Sell More Businesses
September 28 2015 - 8:00AM
Dow Jones News
Halliburton Co. and Baker Hughes Inc. said Monday that they plan
to unload a handful of other businesses as they continue to seek
regulatory approval for their $35 billion merger.
The companies said they plan to sell Halliburton's expandable
liner hangers business; Baker Hughes's core completions business,
which includes its packers, flow control tools and subsurface
safety systems; Baker Hughes's sand control business in the Gulf of
Mexico; and Baker Hughes's offshore cementing businesses in
Australia, Brazil, the Gulf of Mexico, Norway and the United
Kingdom.
Halliburton already agreed to divest itself of its fixed cutter
and roller cone drill bits, directional drilling and
logging-while-drilling/measurement-while-drilling businesses.
The companies said the businesses being divested had $5.2
billion in revenue in 2013.
The two oilfield-services firms, the second- and third-biggest
in the industry, agreed to join forces last November following a
sharp drop in oil prices.
Antitrust experts have said the merger could face resistance
from regulators because it would leave the industry highly
concentrated between two large companies: the merged Halliburton,
as the new company would be named, and Schlumberger Ltd.
The companies said they haven't reached an agreement with
regulators about the adequacy of the divestitures.
The sale of the businesses is contingent on the merger being
approved by regulators.
The companies said they have also pushed back the U.S. Justice
Department's antitrust review period by three weeks, to
mid-December from Nov. 25. They previously had extended the period
in July.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 28, 2015 07:45 ET (11:45 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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