DOJ Challenges Halliburton-Baker Hughes Deal

WASHINGTON—The Justice Department Wednesday filed an antitrust lawsuit challenging Halliburton Co.'s planned acquisition of rival Baker Hughes Inc., alleging that the deal would threaten higher prices and reduced innovation in the oil-field services industry.

The lawsuit, filed in a Delaware federal court, asserts that the transaction would eliminate important head-to-head competition in markets for 23 products and services used for U.S. oil exploration and production, from drill bits to offshore cementing services.

"The proposed deal between Halliburton and Baker Hughes would eliminate vital competition, skew energy markets and harm American consumers," Attorney General Loretta Lynch said in a statement.

The companies pledged to fight the Justice Department lawsuit vigorously. In a joint statement, they said they "believe that the DOJ has reached the wrong conclusion in its assessment of the transaction and that its action is counterproductive, especially in the context of the challenges the U.S. and global energy industry are currently experiencing."

Write to Brent Kendall at brent.kendall@wsj.com and Alison Sider at alison.sider@wsj.com

(END) Dow Jones Newswires

April 06, 2016 10:45 ET (14:45 GMT)

Halliburton (NYSE:HAL)
Historical Stock Chart
From Mar 2024 to Apr 2024