Halliburton, Baker Hughes call off merger

Halliburton Co. and Baker Hughes Inc. have terminated the merger agreement they entered into in November 2014, effective April 30, 2016.

Offshore staff

HOUSTONHalliburton Co. and Baker Hughes Inc. have terminated the merger agreement they entered into in November 2014, effective April 30, 2016.

In connection with the termination of the merger agreement, Halliburton will pay Baker Hughes the termination fee of $3.5 billion by Wednesday, May 4, 2016.

Dave Lesar, chairman and CEO of Halliburton, said: “Today’s outcome is disappointing because of our strong belief in the vast potential of the business combination to deliver benefits for shareholders, customers and both companies’ employees. 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.”

Martin Craighead, chairman and CEO of Baker Hughes, said: “Today’s outcome is disappointing because of our strong belief in the vast potential of the business combination to deliver benefits for shareholders, customers and both companies’ employees.

“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. As we turn the page on this chapter, I want to thank our customers for their patience and continued loyalty over the past 18 months.”

05/02/2016

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