Halliburton to Buy Baker Hughes for $34.6 Billion
Cash and Stock Deal Follows Weeks of Discussions
Halliburton Co. has agreed to buy oil field company Baker Hughes Inc. in a stock-and-cash deal valued at $34.6 billion after weeks of discussions.
Halliburton’s $78.62-a-share offer has an enterprise value of $38 billion, based on Halliburton’s closing price on Nov. 12. Upon completion, Baker Hughes shareholders will own about 36% of the combined company.
The deal comes after weeks of discussions turned hostile. The Wall Street Journal reported last week that Halliburton and Baker Hughes were in talks. The deal would help the big oil-field services companies contend with falling oil prices. Halliburton made its initial proposal to Baker Hughes on Oct. 13.
Halliburton intends to finance the cash portion of the acquisition through a combination of cash on hand and fully committed debt financing. If required by regulators, Halliburton will divest businesses that generate up to $7.5 billion in revenues, and will pay a $3.5 billion termination fee if the transaction fails due to regulatory problems.
The transaction is expected to close in the second half of 2015.
On a pro forma basis, the combined company had 2013 revenues of $51.8 billion, more than 136,000 employees and operations in more than 80 countries around the world.
The new company will have a combined board of 15 members, including three from the Baker Hughes board. Halliburton Chief Executive Dave Lesar will continue as CEO.
Write to Angela Chen at angela.chen@dowjones.com