The agreement with the Justice Department extends the review period to November 25 or 90 days after both companies have certified substantial compliance with the Justice Department’s second request, whichever is later.
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Halliburton and Baker Hughes said they will continue to work constructively with all competition enforcement authorities that have expressed an interest in the proposed transaction.
Both Halliburton and Baker Hughes expect to certify substantial compliance with the DOJ’s second requests, issued to each company, by mid-summer.
Halliburton agreed to pay Baker Hughes$3.5 billion if the deal fails to clear antitrust review. It didn’t say which additional units it would divest, but the sales won’t exceed the $7.5 billion in revenue-generating businesses Halliburton had envisioned when it announced the deal past year.
July 10 US energy firms added five oil rigs this week, the second week of increases in a row, despite a 19 percent collapse in US crude prices from a recent high, data showed on Friday, a sign drillers were ready to return to the well pad.
Oil and gas drilling and exploration companies have tanked year to date, including Diamond Offshore Drilling (DO – Get Report), down 31.6%; Noble Corp.
In March, both Halliburton and Baker Hughes stockholders showed an overwhelming response of almost 99% and 98% respectively, in favor of the merger. 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 1 December 2015, Baker Hughes said.
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