+ 1 888 391 5441

Oilfield Services Company Halliburton considers acquiring Baker Hughes


Halliburton which is one of the world’s largest oil field services company is in advanced talks to acquire Baker Hughes, another oilfield services company. This acquisition would unite two of the largest oilfield services providers in the world.

On Wednesday, Baker Hughes ended trading with a market value worth approximately $25 billion. The acquisition amount is yet to be disclosed.

Baker Hughes said that these discussions may or may not lead to any transaction. The company said that it does not intend to comment further on market speculation or disclose any developments unless and until it otherwise deems further disclosure is appropriate or required.

This year, the fall in the prices of crude oil has affected Halliburton and Baker Hughes. The fall is caused by a boom in domestic energy production which has flooded the market with natural gas and oil.

Many investors fear that service providers such as Halliburton and Baker Hughes might be forced to cut their prices, affecting their profitability. Since crude oil prices peaked, Halliburton and Baker Hughes‘s shares have been falling.

President of a Strategic Energy and Economic Research, Michael C. Lynch said that currently both the companies won’t have the market power to raise prices. He added that Halliburton acquisition of Baker Hughes would be a big deal and it’s something like the 500-pound gorilla swallowing the 300-pound gorilla.

However this merger could help Baker Hughes and Halliburton compete against Schlumberger, which is a bigger company.

Halliburton was a pioneer of fracking or hydraulic fracturing, the drilling technique that has boosted the United States energy boom. Halliburton was founded in 1919 and it currently has 80,000 employees. Halliburton is currently a leading supplier of fracking equipment.

Baker Hughes was founded in 1987 by the merger of Hughes Tool Company, and Baker International petroleum companies. Currently 60,000 employees are employed. Howard R. Hughes Senior, the founder of Hughes Tools had invented a rotary bit for drilling oil wells through rock.

Why http://www.chinamarketresearchreports.com
We use cookies to deliver the best possible experience on our website.
By continuing to use this site, or closing this box, you consent to our use of cookies. To learn more, visit our Privacy Policy