Oilservice major Halliburton announces marketing of certain assets to satisfy antitrust laws
Earlier this month, Halliburton (ticker: HAL) announced that it would divest $3.5 billion in assets in the first round of divestitures to satisfy antitrust concerns in its $35 billion acquisition of Baker Hughes (ticker: BHI). HAL will be separately marketing for sale the company’s Fixed Cutter and Roller Cone Drill Bits, Directional Drilling and Logging-While-Drilling (LWD)/Measurement-While-Drilling (MWD) business, according to a company press release.
During the company’s Q1’15 conference call, Chief Integration Officer and Executive Vice President Mark McCollum said the revenue associated with these businesses was approximately $3.5 billion. “We are very pleased with the strong interest that’s been expressed in these assets by potential buyers, both within the energy industry as well as outside the industry,” said McCollum. Final sale of the assets is subject to obtaining final approval of the BHI deal.
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When asked what other assets might be sold to meet antitrust laws, McCollum said it was too early to tell, but that more divestures would happen. “We know that there will be some additional divestitures to do, we don’t exactly know what those are going to be.” McCollum also said that the company is well under the $7.5 billion threshold laid out in the merger, making additional sales possible.
Australia Will Weigh In
The combined company will hold operations in more than 80 countries, meaning it has several different antitrust authorities to deal with in order to finalize the merger. Australia’s antitrust watchdog began its review of the acquisition last Tuesday, with the intention of issuing a decision or outlining any concerns about the deal by July 9, reports Reuters.
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