• 2 days The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 2 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 2 days European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 3 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 11 hours "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 4 days Demonising fossil fuels has caused major grid problem in Australia
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 6 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 330 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 8 days ESG Topic - "German Police Raid Deutsche Bank, DWS Over Allegations Of Greenwashing" - ZeroHedge Bloomberg and others
  • 9 days "And this is perhaps the most dangerous kind of government there can be."
China Considers Extending EV Tax Breaks

China Considers Extending EV Tax Breaks

Faced with declining EV sales,…

The EV Revolution Is Transforming Rental Companies

The EV Revolution Is Transforming Rental Companies

Increasing demand for electric vehicles…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

DOJ Files Lawsuit Against Halliburton-Baker Hughes Merger

The U.S. Justice Department is seeking to block the merger of Baker Hughes and Halliburton, preventing the tie-up of the second and third largest oilfield services companies.

DOJ filed a lawsuit against the proposed merger, which presents a major roadblock to the $35 billion merger. The lawsuit hinges on antitrust grounds, as the combined company would control too much of the oilfield services market.

Halliburton pursued the takeover because it would streamline their businesses, lowering costs for its clients, which are exploration and production companies. But antitrust regulators are concerned about too much market power. Related: How The Ocean Can Help Predict Electricity Prices

The lawsuit could derail the tie-up. Halliburton and Baker Hughes could fight the Justice Department, hoping to win in court, or they could call off the merger. On Tuesday, Baker Hughes’ share price dropped 5.1 percent on the news, while Halliburton’s stock rose 1.2 percent. Baker Hughes’ shareholders would still benefit if the deal falls apart – Halliburton would be required to pay them a $3.5 billion breakup fee.

The Justice Department hinted at its opposition to the deal in a separate court filing, in which it said that the merger “threatens to substantially lessen completion in numerous markets.” Related: Oil Sanctions Risk Pushing An Unstable North Korea Over The Edge

Bloomberg reports that if the deal collapses, the two companies could turn their sights on other smaller players as takeover targets. "We view BHI as well positioned to make an acquisition and a fallout of the HAL merger could, in our opinion, spur industrywide consolidation," Matt Marietta, analyst at Stephens Inc., wrote in a recent research note.

The Halliburton-Baker Hughes tie-up also faces regulatory scrutiny around the world. The European Commission halted its review of the purchase for the third time. Antitrust regulators in Australia have also raised concerns. Related: Why Oil Prices Will Rise And Many Pundits Will Be Caught By Surprise

Oil producers are not happy with the merger either. Total’s CEO said in March that the merger would not be beneficial to exploration companies. Chevron’s unit in Brazil said that the merger would leave them with fewer oilfield service options, which could raise costs.

The news that the Department of Justice is intervening to block the merger comes as the Obama administration published new rules on inversions, a type of acquisition that companies have used to lower their U.S. tax bills. That led to the end of Pfizer’s $150 billion takeover of Allergan.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • buck on April 06 2016 said:
    Haliburton do something evil!? Why would you think that?

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News