Halliburton’s takeover of its smaller rival Baker Hughes will result in both companies shedding subsidiaries, not to fall foul of the U.S. anti-trust bodies, who expressed concern that the merger will lead to higher prices and less innovation – Reuters reported.
As a result, Halliburton disclosed that it is planning to get rid of three of its drilling businesses and on Monday said it had received proposals from multiple interested parties for each business. Additionally it will sell its liner hangers business. Baker Huges is expected to sell its core completions business, its sand control business in the Gulf of Mexico and its offshore cementing businesses in Australia, Brazil, the Gulf of Mexico, Norway and the United Kingdom.
The news of the $35 billion merger was first announced in November last year. Upon the completion of the transaction, Baker Hughes stockholders will own approximately 36 percent of the combined company. The agreement has been unanimously approved by both companies’ Boards of Directors.
The combined company will maintain the Halliburton name and continue to be traded on the New York Stock Exchange under the ticker symbol “HAL.” The company will be headquartered in Houston, Texas. When announced, the transaction was expected to close in the second half of 2015.
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