US Puts Off Decision On Halliburton, Baker

   (FROM THE WALL STREET JOURNAL 12/16/15) 
   By Brent Kendall and Alison Sider

Oil-field services companies Halliburton Co. and Baker Hughes Inc. will have to wait awhile longer to learn whether U.S. antitrust enforcers will allow their proposed merger.

The companies said the Justice Department wouldn't make a decision on Tuesday, as contemplated by a previous timing agreement between the two sides.

The Justice Department doesn't believe the companies have offered sufficient remedies to address government antitrust concerns but will consider further proposals, Halliburton and Baker Hughes said in a joint statement.

The companies said there was "no guarantee" that an agreement could be reached. They also said they have agreed to extend the time period for the closing of the transaction to April 30, 2016.

Halliburton has sought to address antitrust concerns by selling businesses that have generated some $5.2 billion in annual revenue. On Tuesday the companies said they significantly enhanced their offer of asset sales recently in an effort to address the Justice Department's concerns.

The Wall Street Journal reported last week that the Justice Department, after a yearlong investigation, has antitrust concerns about the deal.

Despite the previous timing agreement, the Justice Department didn't face significant pressure to act on the deal by Tuesday because the companies are simultaneously facing antitrust issues in other international jurisdictions and aren't in a position to close their transaction with those regulatory reviews pending.

A Justice Department spokesman declined to comment.

(END) Dow Jones Newswires

December 16, 2015 02:49 ET (07:49 GMT)

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