Post Tagged with: "Antitrust"

Halliburton Raising $7.5 Billion, Baker Hughes Merger Talk Heats Up

Halliburton Raising $7.5 Billion, Baker Hughes Merger Talk Heats Up

Capital will be raised in Five Tranches Advocates for the highly scrutinized merger between Halliburton (ticker: HAL) and Baker Hughes (ticker: BHI) possibly received the most positive news to date in a news release issued on November 5, 2015. Halliburton, the world’s second largest oilservice provider by market capitalization, will issue a total of $7.5 billion in senior notes to “[finance] a portion of the cash consideration component” associated with the BHI merger. The note breakdown includes: Amount (Billion) Length (Years) Interest (Fixed Rate) Mature Date $1.25 5 2.70% 11/15/2020 $1.25 7 3.375% 11/15/2022 $2.00 10 3.80% 11/15/2025 $1.00 20 4.85% 11/15/2035 $2.00 30 5.00% 11/15/2045 The offering is expected to close on November 13, 2015. If the merger is ultimately unsuccessful, HAL will use the proceeds from the last three notes listed above for general corporate purposes. The other two notes will be subject to a special mandatory redemption.[Read More…]

Nord Stream 2 Gas Pipeline Could Pose Risk for Gazprom

Nord Stream 2 Gas Pipeline Could Pose Risk for Gazprom

Gazprom faces obstacles to financing $11 billion project in current market – Fitch Ratings Russian gas giant Gazprom (ticker: OGZPY) may not have the financial strength to follow through on the construction of its Nord Stream 2 project, according to a report from credit ratings agency Fitch. According to the rating agency, Nord Stream 2 may hurt the company’s commercial and financial performance, reports Natural Gas Europe. “The original Nord Stream was funded by project finance. We believe raising multi-billion dollar project financing for Nord Stream 2 in the capital markets would probably be much harder now,” said Fitch. “This is because Western sanctions have significantly hindered international funding to Russian corporations, even those not directly sanctioned.” The Nord Stream 2 project would add a third and fourth line to the existing Nord Stream project, which has a capacity of 55 billion cubic meters per year, according to Gazprom. The[Read More…]

September 22, 2015 - 5:04 pm International, Midstream, Oil and Gas 360 Articles
Source: http://www.gazprom.com/press/gallery/events/649250/

E.U. Antitrust Regulators Go After Gazprom

Antitrust charges brought against Russian energy giant Gazprom The European Commission (EC), the executive branch of the European Union, charged Russian energy giant Gazprom (ticker: OGZPY) with abusing its dominance in natural gas markets in Europe. The EC claims that Gazprom may be using its dominant market position in Europe to impose territorial restrictions, charge unfair pricing to some E.U. members and leverage its market position to obtain unrelated infrastructure commitments from some customers, according to the EC’s “Statement of Objections.” According to the EC, Gazprom includes a number of territorial restrictions in supply agreements with wholesalers preventing the export of gas in eight E.U. member states (Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland and Slovakia). The agreements include export ban clauses, destination clauses stipulating that the customer must use the gas in its own country, and other measures that include wholesalers obtaining Gazprom’s approval to export its gas[Read More…]