Stockholders approve Halliburton/Baker Hughes deal

Mar 27, 2015

Overwhelming support from stockholders at both sides of Halliburton and Baker Hughes approved the US$34.6 billion merger today (27 March).

Lessar. From Halliburton Facebook.

A total of nearly 99% at Halliburton and 98% of the shares at Bakers Hughes voted in favor of the agreement, representing more than 75% of all outstanding shares of Baker Hughes.

Subject to regulatory approvals and customary closing, the transaction is expected to close in 2H 2015.

“Today’s results are an important milestone in our efforts to build a global leader in oilfield services that can deliver more benefits for customers, improved value for stockholders and more long-term opportunities for employees,” says Martin Craighead, Baker Hughes chairman and CEO. “We look forward to continuing to work collaboratively with Halliburton on the regulatory review process and the creation of a thoughtful integration plan that combines the best of both companies.”

“We are more confident than ever that this combination will create a stronger, more diverse organization with an unsurpassed depth and breadth of services benefitting our stockholders, customers, employees and other key stakeholders of both companies,” says Dave Lesar, Halliburton chairman and CEO.

Image from Baker Hughes Twitter.

The two oil and gas giants reached a merger agreement in November 2014 worth $34.6 billion in stock and cash. News of the merger leaked days prior to the announcement in mid-November, causing Baker Hughes’ stock to rise more than 15% to $59.48 from $50.98 per share. Hallibruton’s stock went from $53.23 per share to $54.92 in two days following the news.

Halliburton expects the deal to create $2 billion a year in cost synergies, with the possibility of resulting in up to $7.5 billion in divestments.

The deal is also expected to give the Baker Hughes an enterprise value of $38 billion.

In December, Halliburton announced its new board of directors, appointing Mark McCollum as executive vice president and chief integration officer. Belgacem Chariag, president of global products and services for Baker Hughes, will serve as lead for Baker Hughes on the joint integration team.

Baker Hughes has 61,000 staff working in more than 80 countries. Halliburton has about 80,000 staff in about 80 countries.

North America