Halliburton and Baker Hughes are in talks to sell $7 billion in assets to private equity shop Carlyle Group LP, according to a report in the Wall Street Journal.
The two Houston companies have sought to overcome antitrust concerns over their potential $35 billion merger by shopping overlapping assets to competitors such as General Electric Co. and, briefly, Weatherford International. The report indicates a widening of the market for the businesses owned by Halliburton and Baker Hughes, which have faced strong opposition from antitrust regulators over their plan to combine.
The Journal, citing sources familiar with the matter, said Halliburton and General Electric couldn’t agree on a price, though it remains in the running to buy the businesses. Regulators were in part concerned that the businesses Halliburton shed wouldn’t survive on their own or as part of a smaller competitor. In addition, low oil prices have strained the oil services industry, limiting the pool of buyers willing to shell out for new ventures.
A sale to a private equity group such as Carlyle Group could address some of these concerns, the Journal reported, though it’s not clear the talks could result in a sale or regulators would bless the divestment.
As part of the merger agreement signed in November 2014, Halliburton agreed to sell assets that generated as much as $7.5 billion in 2013 revenue, but that failed satisfy the Justice Department. Bill Baer, assistant attorney general for the antitrust division, called the deal “unfixable” in announcing the recent lawsuit. “I’ve seen a lot of problematic mergers in my time, but I’ve never seen one that poses so many antitrust problems in so many markets,” he said.
Full Content: Midland Reporter-Telegram
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Geradin Partners Expands Paris Office with Key Hire
Aug 30, 2024 by
CPI
Judge Accuses Google of ‘Clear Abuse’ in Antitrust Case Over Deleted Employee Chats
Aug 29, 2024 by
CPI
Hong Kong Cleaning Company Employee Charged in Historic Antitrust Investigation Case
Aug 29, 2024 by
CPI
Inside the Yelp Suit: Allegations of Google’s Abuse of Search Power
Aug 29, 2024 by
CPI
AI Safety Bill Clears Hurdle in California, Heads to Governor’s Desk
Aug 29, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – State Attorneys General
Aug 22, 2024 by
CPI
CPI Talks… …With Attorney General Phil Weiser
Aug 22, 2024 by
CPI
The Bipartisan Miracle of State Antitrust Enforcement
Aug 22, 2024 by
Gwendolyn J. Lindsay Cooley
Recent Developments in State Antitrust Enforcement: Agriculture and Food Markets
Aug 22, 2024 by
Elizabeth R. Odette
State Attorneys General: Stewards of Consumer Health and Welfare
Aug 22, 2024 by
Brooke Howlett Lovrovich