Lower Oil Prices Just Forced A Big Oil Merger
The $34.6 billion deal between Halliburton and Baker Hughes comes at a time when oil prices are hitting their lowest points in years.By Matt Moreno | November 17, 2014
While consumers might be rejoicing over falling prices at the pump, some in the oil business are not. Now two of them are teaming up — whether the smaller of the two likes it or not.
In a $34.6 billion stock-and-cash deal, the world's second-largest oil field services company, Halliburton, will take over the third-largest oil field services company, Baker Hughes. Halliburton will offer $78.62 a share for Baker Hughes' stockholders.
Bloomberg calls it the "largest takeover of a U.S. energy company in years" and notes the combined companies will still be just over half the size of the largest worldwide oil field services provider, Schlumberger Ltd.