Australian Competition Commission Raise Concers About Halliburton, Baker Hughes Deal

The Australian Competition and Consumer Commission (ACCC) has raised concerns about Halliburton's proposed $35 billion takeover of rival Baker Hughes.

“The ACCC’s preliminary view is that the proposed acquisition is likely to raise competition concerns in a number of markets for the supply of oilfield goods and services,” ACCC Chairman Rod Sims said Friday in a statement.

Halliburton and Baker Hughes are close competitors across a broad range of oilfield goods and services in Australia, and in many countries around the world.

“The ACCC is concerned that the acquisition would result in the merged entity being one of only a small number of suppliers that could service the relevant markets. The ACCC is particularly concerned in relation to the supply of complex or high-risk projects, such as off-shore drilling projects,” Sims said.

The completion watchdog further stated that it considers the proposed acquisition may create conditions that would facilitate coordinated behaviour in the market.

The ACCC is inviting further submissions from the market in response to the Statement of Issues by 12 November 2015. As a result, the ACCC’s final decision will be deferred until 17 December 2015.

The proposed acquisition is also being considered by competition authorities in a number of jurisdictions, including the US, the European Union, India and China.