May 2, 2016
Halliburton announced yesterday, May 1st, that the merger agreement with Baker Hughes that was entered November 2014 was terminated. Having faced difficulties with the Department of Justice in US, antitrust issues internationally and E&P companies’ resistance, the deal broke after the April 30th deadline. Baker Hughes will receive $3.5 billion in breakup fee. That damage repair is fully needed as Baker Hughes have been bleeding market shares to Halliburton and others over the course of the downturn, and have seen their onshore pressure pumping market in red. In terms of revenue, Halliburton was 28% larger than BHI in Q1 2014, while at the end of the first quarter of this year, it was more than 50% larger than Baker Hughes. If the deal was completed, 20% of the market share among the top 400 service companies would end up in the hands of Schlumberger and Halliburton alone.
Contact: Audun M. Martinsen, VP Analysis
Mobile: +47 48 07 76 11
Contact: Julia Weiss, VP Marketing
Phone: +47 24 00 42 90
Mobile: +47 48 29 87 61
About Rystad Energy
Rystad Energy is an independent oil and gas consulting services and business intelligence data firm offering global databases, strategy consulting and research products.
Rystad Energy’s headquarters are located in Oslo, Norway, with additional research teams in India. Further presence has been established in Norway (Stavanger), the UK (London), USA (New York & Houston), Russia (Moscow), South Amercia (Rio de Janeiro), Africa as well as South East Asia.