Competition issues scupper Halliburton-Baker Hughes merger

Baku, May 3, AZERTAC

Oilfield services provider Halliburton and smaller rival Baker Hughes have called off their merger after US and European anti-trust regulators said the tie-up could reduce competition and innovation, according to Euronews.

Worth $28 billion (24 billion euros) – it would have brought together the world’s second and third largest companies in that field.

“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,” said Dave Lesar, chief executive of Halliburton.

“The companies’ decision to abandon this transaction – which would have left many oilfield service markets in the hands of a duopoly – is a victory for the US economy and for all Americans,” US Attorney General Loretta Lynch said.

The European Commission had also previously expressed concerns.

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