english issue
DOJ sues to block Halliburton ’ s acquisition of Baker Hughes
The US Department of Justice has filed a civil antitrust lawsuit to block Halliburton Co .’ s proposed acquisition of Baker Hughes Inc . The department filed its lawsuit in the US District Court for the District of Delaware , where both companies are incorporated . It alleges that the transaction threatens to eliminate competition , raise prices , and reduce innovation in the oilfield services industry . The complaint alleges that the acquisition – which the companies valued at $ 34 billion in November 2014 – would combine two of the three largest oilfield services companies , eliminating important head-to-head competition in markets for 23 products or services . Attorney General Loretta E . Lynch said : “ The proposed deal between Halliburton and Baker Hughes would eliminate vital competition , skew energy markets , and harm American consumers . Our action makes clear that the Justice Department is committed to vigorously enforcing our antitrust laws .” During the department ’ s investigation , Halliburton proposed to remedy the effects of the transaction by divesting a mix of assets extracted from certain business lines of the two companies . According to the complaint , the proposed divestitures would not include full business units but rather would be limited to certain assets , with the merged firm holding onto important facilities , employees , contracts , intellectual property , and research and development resources that would put the buyer of those assets at a competitive disadvantage . The complaint further alleges that the proposed divestures mostly would allow Halliburton to retain the more valuable assets from either company while selling less
58 / OIL & GAS business / NUMÉRO 14 / Avril 2016