The American oilfield giants Halliburton and Baker Hughes announced the termination of the merger. The Company could not achieve the remaining regulatory approvals
The second and third largest global oilfield services giant – US companies Halliburton and Baker Hughes – have announced the cancellation of the merger, which they made in 2014. This is stated in a press release posted on the Halliburton website.
«Both companies expect that the proposed merger would be beneficial for shareholders, customers and other stakeholders, however, problems in obtaining the remaining regulatory approvals and general conditions industry, which caused damage to the financial aspects of the transaction, led us to the conclusion that the refusal to deal is the best method of action “- are contained in the press release
words of the chairman and CEO of Halliburton The report notes that. to May 4, 2016 to pay Halliburton Baker Hughes $ 3,5 billion as a penalty.
The companies announced the deal in November 2014. Then the amount of the transaction was estimated at $ 34.6 billion, but now, as noted to Reuters, it is estimated at approximately $ 28 billion.
As he wrote Wall Street Journal, the merger of the two companies would help reduce costs and manage their with the fall in oil prices. In addition, the newspaper notes, the association will help companies compete more effectively with the largest oilfield services company Schlumberger.
In early April, Reuters reported with reference to its sources reported that the US Department of Justice is going to challenge the merger oilfield Halliburton and Baker Hughes.
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