If the deal goes through, it would be one of the largest energy deals in recent years.
Halliburton is in talk to buy Baker Hughes in what would be a merger of oil field services giants, according to the Wall Street Journal, citing sources familiar with the deal.
The Journal did not mention a possible price for the acquisition.
If an agreement is reached, the deal would be one of the largest in the energy sector in recent years.
Baker Hughes BHI 4.22% , which has a market value of $26.1 billion, saw its share price surge 15% to $58.98 after the news broke Thursday.
Shares of Halliburton HAL 1.05% , which has a market value of $46.77 billion, are were up about 1% to $53.79 at the close of regular trading.
Both companies help oil producers with their drilling operations.
The news of the possible acquisition comes following a sharp decline in oil prices over the past few months and at a time when oil drillers may be considering cutting back on production. On Thursday, oil prices fell below $75 a barrel for the first time in four years.
In Sept., Halliburton agreed to pay $1.1 billion to settle lawsuits related to the Gulf of Mexico oil spill in 2010, which claimed 11 lives.
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