OREANDA-NEWS.
Halliburton Company (NYSE: HAL) and
Baker Hughes Incorporated (NYSE:
BHI) today announced that the companies will market for sale additional
businesses in connection with Halliburton’s pending acquisition of
Baker
Hughes. Pursuant to the Merger Agreement, and in order to permit
completion of Halliburton’s acquisition of
Baker Hughes, the following
additional businesses are intended to be divested: Halliburton’s
expandable liner hangers business, which is part of the company’s
Completion & Production Division; Baker Hughes’ core completions
business, which includes: packers, flow control tools, subsurface safety
systems, intelligent well systems, permanent monitoring, sand control
tools and sand control screens; the
Baker Hughes sand control business
in the Gulf of
Mexico, including two pressure pumping vessels; and Baker
Hughes’ offshore cementing businesses in
Australia,
Brazil, the Gulf of
Mexico,
Norway, and the
United Kingdom.
The divestitures process for the previously announced divestitures of
Halliburton’s Fixed Cutter and Roller Cone Drill Bits, Directional
Drilling and Logging-While-Drilling (LWD)/Measurement-While-Drilling
(MWD) businesses is continuing, and Halliburton is pleased that last
Friday it received proposals from multiple interested parties for each
business.
The combined 2013 revenue associated with all of the businesses intended
to be divested was approximately
\\$5.2 billion. The sale of these
businesses will be subject to the negotiation of acceptable terms and
conditions for the divestitures, the approval of the divesting company’s
Board of Directors, and final approval of the
Baker Hughes acquisition
by competition enforcement authorities.
Halliburton anticipates that the
companies will complete the sales of these businesses in the same
timeframe as, and the closing of the divestitures would be conditioned
on, the closing of the pending
Baker Hughes acquisition.
There is no agreement to date with any competition enforcement authority
as to the adequacy of the proposed divestitures. The companies will
continue to work constructively with all competition enforcement
authorities that have expressed an interest in the proposed transaction.
The pending acquisition has received unconditional regulatory clearances
in Canada, Kazakhstan, South Africa, and Turkey.
Halliburton and Baker Hughes have also amended their timing agreement
with the Antitrust Division of the U.S. Department of Justice (DOJ) to
extend the earliest closing date by three weeks, to the later of Dec.
15, 2015 (from the current date of Nov. 25, 2015) or 30 days following
the date on which both companies have certified final, substantial
compliance with the DOJ second request. 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. In
light of the timing agreement, Halliburton and Baker Hughes have agreed
to extend the time period for closing of the acquisition pursuant to the
Merger Agreement to no later than Dec. 16, 2015. The Merger Agreement
also provides that the closing can be extended into 2016, if necessary.
About Halliburton
Founded in 1919, Halliburton is one of the world's largest providers of
products and services to the energy industry. With more than 70,000
employees, representing 140 nationalities in over 80 countries, the
company serves the upstream oil and gas industry throughout the
lifecycle of the reservoir - from locating hydrocarbons and managing
geological data, to drilling and formation evaluation, well construction
and completion, and optimizing production through the life of the field.
About Baker Hughes
Baker Hughes is a leading supplier of oilfield services, products,
technology and systems to the worldwide oil and natural gas industry.
The company's 49,000 employees today work in more than 80 countries
helping customers find, evaluate, drill, produce, transport and process
hydrocarbon resources.
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