FEBRUARY 11, 2015
Houston-based Halliburton and Baker Hughes received a request for
additional information from the U.S. Department of Justice Wednesday in
connection with Halliburton’s pending acquisition of Baker Hughes.
The second requests were issued under the notification requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
The requests are a standard part of the regulatory review process by
the DOJ and were expected by the companies, Halliburton and Baker Hughes
said.
The move will extend the waiting period imposed by the HSR Act until
30 days after Halliburton and Baker Hughes have substantially complied
with the requests.
The waiting period can be voluntarily extended by both parties or terminated sooner by the DOJ.
Halliburton and Baker Hughes are working cooperatively with the DOJ as it conducts its review of the transaction.
The deal is still subject to shareholder and other approvals, as well as customary closing conditions.
Halliburton agreed to buy rival firm Baker Hughes in November for $34.6 billion in cash and stock.
Halliburton said it is prepared to divest from businesses that
generate a combined $7.5 billion per year, although it expects
regulators will require “significantly less” divestment.
The company has also agreed to pay a $3.5 billion fee if the transaction fails to win regulatory approval.
Halliburton said it expects the merger to save the company nearly $2 billion per year.