Halliburton buying Baker Hughes

Halliburton has initiated talks to acquire Baker Hughes, a supplier of oilfield services, products, technology and systems to the international oil and natural gas industry.

According to The Wall Street Journal, which was the first to run the news, the combination of the two oilfield services giants would be one of the biggest mergers in recent years. The merger would  create a company of around which would have a market value of about $75 billion. Halliburton’s current market value is $47.65 billion, while Baker Hughes rose to $26.59 billion.

However, the newspaper further reminds that the new company would be the second largest oilfield services provider in the world, behind Schlumberger.

“…the combination of the two oilfield services giants would be one of the biggest mergers in recent years…”

Schlumberger, the world’s largest oilfield services company, employs approximately 126,000 people representing more than 140 nationalities working in more than 85 countries. The company’s market capitalization is around $127.65 billion.

Following an article by The Wall Street Journal, Baker Hughes issued a separate statement confirming it “has engaged in preliminary discussions with Halliburton Company regarding a potential business combination transaction.”

“These discussions may or may not lead to any transaction. Baker Hughes 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,” Baker Hughes said.