Oilfield services companies Halliburton and Baker Hughes have announced merger for US$34.6bn
The transaction is expected to close in the second half of 2015.
Under the terms of the definitive agreement, Halliburton will acquire all the outstanding shares of Baker Hughes in a stock and cash transaction. The transaction is valued at US$78.62 per Baker Hughes share, representing an equity value of US$34.6bn and enterprise value of US$38bn.
Upon the completion of the transaction, Baker Hughes stockholders will own approximately 36 per cent of the combined company, company sources said.
The transaction combines two highly complementary suites of products and services into a comprehensive offering to oil and natural gas customers. On a pro-forma basis the combined company had 2013 revenues of US$51.8bn, more than 136,000 employees and operations in more than 80 countries around the world.
Dave Lesar, CEO of Halliburton, said, “We are pleased to announce this combination with Baker Hughes, which will create a bellwether global oilfield services company and offer compelling benefits for the stockholders, customers and other stakeholders of Baker Hughes and Halliburton.
“The transaction will combine the companies’ product and service capabilities to deliver an unsurpassed depth and breadth of solutions to our customers, creating a Houston-based global oilfield services champion, manufacturing and exporting technologies, and creating jobs and serving customers around the globe.”
The CEO added that they expected the combination to yield annual cost synergies of nearly US$2bn.
Martin Craighead, CEO of Baker Hughes, said, “By combining two great companies that have delivered cutting-edge solutions to customers in the worldwide oil and gas industry for more than a century, we will create a new world of opportunities to advance the development of technologies for our customers.”
