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Baker Hughes deal likely to close in 2016 -Halliburton executive

Published 2015-12-09, 01:56 p/m
© Reuters. Baker Hughes deal likely to close in 2016 -Halliburton executive

HOUSTON, Dec 9 (Reuters) - Oilfield services company
Halliburton's HAL.N proposed $35 billion acquisition of rival
Baker Hughes (N:BHI) Inc BHI.N will likely close in 2016 instead of
this year as talks with U.S. regulators continue, a Halliburton (N:HAL)
executive said on Wednesday.
The companies have already agreed to divest $5.2 billion in
overlapping businesses to quell concerns the merger would lead
to higher prices and less innovation.
"Currently we are having substantive discussions with the
(Department of Justice)," Christian Garcia, Halliburton's acting
chief financial officer told Wells Fargo (N:WFC)'s Energy Symposium.
"Depending on the outcome of these discussions and the remedies
that may be required, there is strong likelihood that the
closing of the transaction will slide to 2016."
Garcia said the companies were confident that the deal would
be approved.
Halliburton is "finalizing negotiations" with buyers for the
drilling businesses it first announced it would divest, Garcia
said.
The deal, which would create the second-largest oilfield
services company behind Schlumberger Ltd SLB.N has so far won
regulatory approvals in South Africa, Turkey, Colombia, Canada
and Kazakhstan. Approvals from antitrust officials in other
countries, including Australia and Brazil, were pending.
The proposed merger, first announced in 2014, was originally
expected to close in late November, but U.S. regulators
requested more information from the companies. That request
extended the earliest closing date to Dec. 15.

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