By Tom Fairless
BRUSSELS--Halliburton Co. (HAL) and Baker Hughes Inc. (BHI)
formally notified their $35 billion merger to European Union
regulators Thursday, kicking off the EU's review of a deal that has
been expected to face resistance from antitrust authorities.
The two oilfield services firms, the second and third biggest in
the industry, agreed to join forces last November following a sharp
drop in oil prices.
They filed paperwork in Brussels Thursday that launches the EU's
review process, lawyers for Halliburton said.
To address possible antitrust concerns, Halliburton agreed in
November to sell businesses that generate up to $7.5 billion in
revenue. But antitrust experts said the merger could face
resistance from regulators because it would leave the industry
highly concentrated between two large companies: the merged
Halliburton, as the new company would be named, and Schlumberger
Ltd.
Earlier this month, the companies agreed to extend the U.S.
Justice Department's antitrust review period until at least Nov.
25. Halliburton also proposed to U.S. authorities a plan to divest
more businesses than had been previously announced.
Slowing demand for oil and rising supply has put pressure on
firms across the industry. As a result, oil-field services
companies, which are hired to drill and pump wells, face less
demand for their services and pressure to cut prices.
Write to Tom Fairless at tom.fairless@wsj.com
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