Oil: Halliburton and Baker Hughes call off merger

Oil: Halliburton and Baker Hughes call off merger

Editorial Staff
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The US Justice Department blocked the merger agreement between Halliburton and Baker Hughes valued at roughly $35 million

A stop to the merger between Halliburton and Baker Hughes as decided by the US Department of Justice with the last word on a project started in 2014 and valued at roughly $35 million. “This is a victory for the US economy and for all Americans," US Attorney General Loretta Lynch said in a statement, adding that “no merger is too big or too complex to be challenged." In particular, the Department noted that the merger would have eliminated direct competition in 23 product lines with a subsequent increase in prices at the expense of innovation. Halliburton CEO Dave Lesar, said: “the difficulty of securing regulatory approvals and “general industry conditions that severely damaged deal economics, brought on the conclusion that the best option was is to abandon the deal.” 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,” remarked Baker Hughes President and CEO Martin Craighead. Because of the failed deal, Halliburton will have to pay Baker Hughes $3.5 by May 4.