Service & Supply | Oilfield Services | Deals - Acquisition, Mergers, Divestitures
Report: Halliburton In Talks to Buy Rival Baker Hughes
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Oilfield Services giant Halliburton is rumored to be in talks to buy competitor Baker Hughes, according to a report by The Wall Street Journal.
According to Shale Experts' Frac Database, if a deal were to be made, the buyout would create an oilfield services giant that controls nearly 50 percent of the pressure pumping market share (enlarge chart).
Sources say that the companies are "moving quickly" in their discussions and it is possible an agreement will be reached "soon." The deal price being discussed is unknown, but it will likely be one of the priciest deals of the year.
With the news of this potential high-value merger deal, Baker Hughes' share price jumped noticeably in the afternoon hours of Thursday November 13, 2014. Currently, the company’s shares are showing an 18 percent increase in value since the news broke.
Halliburton’s shares have also seen an uptick, but only three percent. According to the WSJ, Halliburton's current market value is approximately $45.2 billion.
In 2013, Baker Hughes pulled in approximately $22.36 billion in revenue while Halliburton posted revenue gains of $24.8 billion.
Both companies are headquartered in Houston, Texas.
Calls for comment on the potential deal to both Halliburton and Baker Hughes were not returned.
Shale Experts will continue to provide updates on this developing story.