Two US oilfield service giants sent shockwaves throughout the oil industry late last week with news of their merger talks.
Halliburton and Baker Hughes are reported to be discussing a possible merger, one that experts say would likely fuel further energy industry consolidation as companies across the globe react to falling gas prices.
Unnamed sources said Friday that merger talks between the two rivals have stalled due to disagreements over price and other issues. But industry experts say whether a deal between Halliburton and Baker actually goes through, the oil sector is likely to see consolidation to assure oil drilling remains profitable amid falling gas prices.
A deal between the companies – two of the world’s largest oilfield service companies – could be valued between $20 billion and $31 billion, experts say, and would create a behemoth for US onshore fracking, overtaking current industry leader Schlumberger. But the transaction would likely face hefty antitrust scrutiny. Halliburton is said to be expecting such scrutiny; one unnamed source said the company is already considering setting up a unit comprised of assets the company would be willing to divest to secure regulatory clearance for the deal.
Full content: Bloomberg
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
College Sports Leaders in Intensive Talks to Settle NIL Antitrust Case Against NCAA
Apr 30, 2024 by
CPI
EU Investigates Facebook’s and Instagram’s Handling of Disinformation Ahead of Elections
Apr 30, 2024 by
CPI
Antitrust Lawsuit Targets Hotel Giants for Alleged Price Fixing with AI
Apr 30, 2024 by
CPI
ABA Seeks to Join FTC Lawsuit Against Amazon Over Antitrust Concerns
Apr 30, 2024 by
CPI
Google Agrees to Pay News Corp for AI-Related Content
Apr 30, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI