Halliburton to Buy Baker Hughes for $34.6 Billion
Halliburton and Baker Hughes agreed on a deal under which Halliburton will take over its former competitor for an equity value of $34.6 billion and enterprise value of $38.0 billion.
‘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,’ reads a note released on Monday.
The combined company had 2013 revenues of $51.8 billion, outperforming all the other oilfield services companies.
“We believe that the expertise of both companies’ employees and leaders will be a competitive advantage for the combined company,” Dave Lesar, Chairman and Chief Executive Officer of Halliburton commented.
“We envision a combined company capable of achieving opportunities that neither company would have realized as well – or as quickly – on its own, all while creating exciting new opportunities for employees” Martin Craighead, Chairman and Chief Executive Officer of Baker Hughes said in a separate communiqué.
Under the terms of the agreement, stockholders of Baker Hughes will receive, for each Baker Hughes share, a fixed exchange ratio of 1.12 Halliburton shares plus $19.00 in cash.