BUSINESS
Halliburton in Talks to Buy Baker Hughes
Talks Moving Quickly Between Rival Providers of Oilfield Services
The deal would be one of the largest energy deals in recent years and comes as the industry is grappling with a sharp decline in oil prices.
The deal would be one of the largest energy deals in recent years and comes as the industry is grappling with a sharp decline in oil prices.
Halliburton Co. is in talks to buy Baker Hughes Inc., according to people familiar with the matter.
Talks between the two oil-field-services companies are moving quickly, and they could reach an agreement soon, said two of the people.
The price being discussed couldn't be learned, but a deal for Baker Hughes would likely come at a premium to the Houston company’s market capitalization, which was $21.6 billion as of Thursday afternoon. Halliburton had a market value of $45.2 billion.
Shares of Baker Hughes, which were halted for a while, jumped 15% following the news to $58.75, while Halliburton shares added 1% to $53.79.
A deal of this size would be one of the largest energy deals in recent years and comes as the industry is grappling with a sharp decline in oil prices.
Baker Hughes was formed in 1987 when Baker International and Hughes Tools Co. came together. The company has more than 60,000 employees, according to its website.
Oil-field services companies help energy producers find and extract hydrocarbons. They have had to deal with a glut of natural-gas supply in recent years that caused oil prices to plunge and pushed energy companies to shift operations to oil-rich shale, which is harder to tap.
—Ryan Dezember contributed to this article.
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