• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 4 hours One Last Warning For The U.S. Shale Patch
  • 2 hours Oil Slips Further From 2019 Highs On Trade Worries
  • 10 mins Poll: Will Renewables Save the World?
  • 52 mins Once Upon A Time... North Korea Abruptly Withdraws Staff From Liaison Office
  • 9 hours China's E-Buses Killing Diesel Demand
  • 13 mins Chile Tests Floating Solar Farm
  • 9 hours Trump sells out his base to please Wallstreet and Oil industry
  • 19 hours Trump Tariffs On China Working
  • 5 hours China's Expansion: Italy Leads Europe Into China’s Embrace
  • 1 day 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 21 hours Read: OPEC THREATENED TO KILL US SHALE
  • 20 hours Russian Effect: U.S. May Soon Pause Preparations For Delivering F-35s To Turkey
  • 4 hours New Rebate For EVs in Canada
  • 19 hours Biomass, Ethanol No Longer Green
Alt Text

Oil Price Rally Hits Resistance

Oil prices are holding their…

Alt Text

Italy Turns Its Back On Russian Gas

Russia’s influence on European gas…

Alt Text

Why No One Is Interested In Building EV Infrastructure

Nowadays, it seems like everyone…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Trending Discussions

Halliburton-Baker Hughes Merger Officially Dead

The blockbuster merger between the second and third largest oilfield services companies is now officially dead. On May 1, Halliburton and Baker Hughes announced the termination of the merger agreement, as the companies are unable to overcome the objections of federal antitrust regulators.

“While both companies expected the proposed merger to result in compelling benefits to shareholders, customers and other stakeholders, challenges in obtaining remaining regulatory approvals and general industry conditions that severely damaged deal economics led to the conclusion that termination is the best course of action,” Dave Lesar, Chairman and Chief Executive Officer of Halliburton, said in a statement. Related: Massive Oil Theft By Pirates Costs Nigeria $1.5 Billion Every Month

The $35 billion merger faced opposition not just from American regulators, but also in Europe. Regulators argued that the merger would have stifled competition in the oilfield services sector. The U.S. Justice Department filed a lawsuit against the transaction in early April, in which it cited 23 product lines that would see competition eliminated if the deal went through. Halliburton and Baker Hughes anticipated regulatory challenges, but had maintained confidence that they could be overcome.

“This was an extremely complex, global transaction and, ultimately, a solution could not be found to satisfy the antitrust concerns of regulators, both in the United States and abroad,” said, Martin Craighead, Chairman and Chief Executive Officer of Baker Hughes.

The U.S. Attorney General Loretta Lynch said the collapse of the deal was “a victory for the U.S. economy and for all Americans.” Related: What Do Brent Spreads Know That We Don’t

There is a silver lining in the termination of the merger, at least for Baker Hughes: Halliburton will have to pay Baker Hughes a $3.5 billion breakup fee, which it agreed to when the companies made the deal back in 2014. That will give Baker Hughes some cash to retool and move forward.

Now with the deal off the table, analyst expect both companies to begin more severe spending cuts as a way of restructuring. With the merger pending, both companies were unable to make necessary cuts in the low oil price environment, so now spending reductions and asset sales are likely.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News