Carlyle enters race for Halliburton-Baker Hughes assets: sources
Reuters
Published Apr 14, 2016 03:42PM ET
Carlyle enters race for Halliburton-Baker Hughes assets: sources
(Reuters) - Carlyle Group LP (O:CG) has entered the auction for assets that oilfield service providers Halliburton Co (N:HAL) and Baker Hughes Inc (N:BHI) aim to divest to secure antitrust approval for their merger, a person familiar with the matter said.
Carlyle, a Washington-based private equity firm, is competing against General Electric Co (N:GE), which was already in discussions to buy many of the assets, the person said on Thursday, asking not to be identified because the negotiations are confidential.
Halliburton and Carlyle declined to comment, while Baker Hughes and General Electric did not immediately respond to requests for comment.
Earlier on Thursday, the Wall Street Journal, citing sources, reported that Carlyle was in serious talks to buy assets worth more than $7 billion from Halliburton and Baker Hughes.
Baker Hughes shares were up 5.5 percent on the news to $43.55, while Halliburton shares were down slightly in Thursday afternoon trading in New York at $38.19.
Halliburton and Baker Hughes are under new pressure to divest assets after the U.S. government filed a lawsuit last week to stop their deal, arguing the combination of the world's No. 2 and No. 3 oil services companies would lead to higher prices in the sector.
The two companies had initially announced they would divest their drill bits and directional drilling businesses as part of their merger.
Last September, the two added several businesses to the list, which in total would amount to $5.2 billion of 2013 revenue. The additional divestitures included Halliburton's expandable line hangers business, Baker Hughes' core completions business, Baker Hughes' sand control business in the Gulf of Mexico, and Baker Hughes' offshore cementing business in Australia, Brazil, the Gulf of Mexico, Norway and the UK.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.