Halliburton Co. and Baker Hughes Inc. have agreed to extend
until at least Nov. 25 the Justice Department's antitrust review
period of their $35 billion merger.
Halliburton also has proposed to competition authorities a plan
to divest more businesses than had been previously announced.
The agreement with the Justice Department extends the review
period to Nov. 25 or 90 days after both companies have certified
substantial compliance with the Justice Department's second
request, whichever is later. The companies said they expect to
achieve substantial compliance by midsummer.
Halliburton and Baker Hughes now expect the deal to close no
later than Dec. 1 and are still in discussions with authorities
regarding the acquisition.
In November, Halliburton agreed to buy Baker Hughes for $35
billion. To address possible antitrust concerns, Halliburton at
that time agreed to sell businesses that generate up to $7.5
billion in revenue.
Halliburton agreed to pay Baker Hughes $3.5 billion if the deal
fails to clear antitrust review. But antitrust experts have said
the merger could face regulatory resistance 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.
Halliburton, the world's second-largest oil-field-services
company, has felt the impact of lower oil prices. It said in April
that it cut 9,000 jobs, or 10% of its workforce and planned to lay
off more employees in the months after.
Shares of Halliburton increased less than 1% in recent
after-hours trading. They have risen about 5% this year. Shares of
Baker Hughes were inactive and have increased about 6%.
Write to Angela Chen at angela.chen@dowjones.com
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