Halliburton acquires Baker Hughes for $34.6 Billion

Halliburton acquires Baker Hughes for $34.6 Billion

Halliburton acquires Baker Hughes for $34.6 Billion

Halliburton agreed to acqurie Baker Hughes for $34.6 Billion. Under the terms of deal, Halliburton will pay 1.12 of its shares and $19 in cash for each Baker Hughes share.

Announcment of this deal came on Fiday after talks between the two companies. Talks began in mid-October, amid a steep drop in crude oil prices driven by the boom in domestic energy production. Therefore, investors have worried that companies would under pressure of natural and oil gas producers, because of lower prices and accompanying dropping profit margins.

Baker Hughes’ shares rose up 18.5 percent, while Halliburton shares goes down nearly 3 percent.

This deal would finance cash and debt deal through Credit Suisse and Bank of America Merrill Lynch.

Between main questions belongs the response by antitrust regulators. Halliburton sells businesses, which generate 7.5 billion in revenue.. It will also have to pay a $3.5 billion breakup fee if the transaction fails to win the requisite antitrust approvals.

Credit Suisse and Bank of America Merrill Lynch is advising like financial advisors to Halliburton, while law firms Baker Botts and Wachtell, Lipton, Rosen & Katz are legal advising.

 Baker Hughes was advised Goldman Sachs and the law firms Davis Polk & Wardwell and Wilmer Cutler Pickering Hale & Dorr.

Mr. Stakebay says:

The combination of both companies helps to compete better against Schluberger and expects to save nearly 2 billion in costs. Baker Hughes’ shareholders will own about 36 percent of the combined company.The combined company will stay the Halliburton name and will be led by David J. Lesar, CEO of Halliburton. On 2nd of May 2016 is  facing  expected to announce the termination of their merger because of  opposition from U.S. and European antitrust regulators.

 

HALLIBURTON

BAKER HUGHES

Revenue

$ 29.402 billion (2013)

$ 22.364 billion (2013)

Operating income

$ 3.138 billion (2013)

$ 1.949 billion (2013)

Profit

$ 2.125 billion (2013)

$ 1.103 billion (2013)

Total assets

$ 29.223 billion (2013)

$ 27.934 billion (2013)

Total Equity

 $ 13.615 billion (2013)

$ 17.912 billion (2013)

Employees

 77 000(2013)

59 400 (2013)

 

Chairman of Baker Hughes……..MARTIN CRAIGHEAD…..(2012-present)……… $ 8 990 520 (2013)

Chairman  of Halliburton………….ALAN M. BENNETT…….(2006-present)………….$ 255 161 (2013)

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