Baker Hughes to acquire BJ Services

In a $5.5-billion transaction, Baker Hughes Inc. and BJ Services Co. have agreed to merge. Baker Hughes offers stock and cash to BJ Services stockholders.

Offshore staff

HOUSTON -- In a $5.5-billion transaction, Baker Hughes Inc. and BJ Services Co. have agreed to merge. Baker Hughes offers stock and cash to BJ Services stockholders.

"BJ Services broadens our portfolio by adding products, technologies and talented people that are key to helping our customers unlock value in their reservoirs, particularly in unconventional gas and deepwater fields,” says Chad C. Deaton, Baker Hughes chairman, president, and CEO. “It will better position us to drive international growth and to compete for the growing large integrated projects by incorporating pressure pumping into our product offering.

"Our two companies have highly complementary products and services with very little overlap. Baker Hughes has a long record of partnering with BJ Services on major projects. The proposed merger will make Baker Hughes a stronger, more efficient service provider for our customers worldwide, by integrating pressure pumping with Baker Hughes' wide range of products and services."

The merger is subject to the approval of both Baker Hughes' and BJ Services' stockholders as well as other customary approvals. The companies anticipate that the transaction could close as soon as the end of the calendar year.

08/31/2009

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