Halliburton, Baker Hughes Terminate Merger Agreement
Halliburton (HAL) and Baker Hughes (BHI) announced the companies have terminated their merger agreement, effective April 30. "While both companies expected the proposed merger to result in compelling benefits to shareholders, customers and other stakeholders, challenges in obtaining remaining regulatory approvals and general industry conditions that severely damaged deal economics led to the conclusion that termination is the best course of action.
While disappointing, Halliburton remains strong," said Halliburton chairman and CEO Dave Lesar. "Today's outcome is disappointing because of our strong belief in the vast potential of the business combination to deliver benefits for shareholders, customers and both companies' employees. This was an extremely complex, global transaction and, ultimately, a solution could not be found to satisfy the antitrust concerns of regulators, both in the United States and abroad.
Baker Hughes is strongly positioned to build on its foundation and heritage as a technology innovator," commented Baker Hughes chairman and CEO Martin Craighead. In connection with the termination, Halliburton will pay Baker Hughes the termination fee of $3.5B by May 4. Halliburton will discuss the termination of the merger agreement during its previously scheduled conference call on May 3
Disclosure: None.