Halliburton and Baker Hughes, world’s second and third largest oilfield services providers, respectively, have entered into a timing agreement with the Antitrust Division of the U.S. Department of Justice (DOJ) to extend the period for the DOJ’s review of Halliburton’s previously announced acquisition of Baker Hughes to the later of November 25, 2015 or 90 days.
“Both Halliburton and Baker Hughes expect to certify substantial compliance with the DOJ’s second requests, issued to each company, by mid-summer. Timing agreements are often entered into in connection with large, complex transactions, and provide the DOJ additional time to review responses to its second requests,” said a statement issued by Halliburton.
In light of the timing agreement, Halliburton and Baker Hughes also have agreed to extend the time period for closing of the acquisition to no later than December 1, 2015.
Halliburton and Baker Hughes continue to be in discussions with the DOJ, the European Commission and other competition enforcement authorities with respect to the acquisition, the statement further reads.
To remind, Halliburton in November 2014 said it had reached definitive agreement with Baker Hughes under which Halliburton will acquire all the outstanding shares of Baker Hughes in a stock and cash transaction.
The transaction is valued at $78.62 per Baker Hughes share, representing an equity value of $34.6 billion and enterprise value of $38.0 billion, based on Halliburton’s closing price on November 12, 2014, the day prior to public confirmation by Baker Hughes that it was in talks with Halliburton regarding a transaction.
Offshore Energy Today Staff