The U.S. Department of justice this week to challenge the merger of oilfield services companies Halliburton and Baker Hughes, reported Reuters on Tuesday, 5 April, a source familiar with the matter.
The company announced the transaction in November 2014. Its cost is estimated at $35 billion.
To save the transaction, Halliburton Co and Baker Hughes, the second and third largest oilfield service companies in the world, consider the possibility of selling the assets. In January Halliburton said the regulator’s readiness to sell assets, which in 2013 grossed more than $5.2 billion.
If it is considered that the merger violates the antitrust laws of the USA, Halliburton under the terms of the transaction will have to pay Baker Hughes $3.5 billion.
The position of the U.S. government reflect the views of antitrust regulators in the European Union, which considered that the merger would reduce competition and innovation in more than 30 commodity markets.
If the merger takes place, the current shareholders of Baker Hughes will receive approximately 36% of Halliburton. The combined company will be called Halliburton. According to Reuters in the spring of 2105 the year, its market value would have been approximately $67 billion.