Halliburton plans to sell a business that markets expandable liner…
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General Electric Company (NYSE:GE) also made a bid offer to the Texas-based oilfield service provider.
Halliburton Company (HAL) and Baker Hughes (BHI) are lower after the companies will sell additional businesses in connection to Hallibruton’s pending buyout of Baker Hughes.
These businesses coupled with the other previously announced divestitures – Halliburton’s fixed cuter and roller cone drill bits, directional drilling and logging-while-drilling/measurement-while-drilling businesses – brought in a combined revenue of $5.2 billion in 2013, the year before the merger was announced.
Federal regulators have been reviewing the deal, and Halliburton said in August that it received a second request for information from the U.S. Department of Justice related to the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Baker Hughes is selling its offshore hydraulic fracturing business in the Gulf of Mexico, along with two vessels that carry the necessary gear to frack the wells and control the sand spilling from the oil-soaked reservoir under the seabed.
Halliburton and Baker Hughes have overlapping businesses in the United States, Asia and Europe, and the deal is being scrutinized by regulators in several countries.
“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”, it said in a statement. The company has received various bids from interested parties for its $5 billion worth of assets.
The divestiture of the entities will ease pressure on the companies, which are hoping to complete the deal by the end of 2015 or early 2016.
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In late-morning trade, shares of Baker Hughes were down 1.4 percent at $51.76 and Halliburton’s were off 2.8 percent at $35.66. Baker Hughes Chairman and Chief Executive Officer Martin Craighead said the merger would be “efficient”.
