In a deal Monday valued at $34.6 billion in cash and stock, Halliburton (NYSE: HAL) agreed to buy Baker Hughes (NYSE: BHI). This is one of the largest oil service industry deals in history and will definitely change the landscape of the Houston energy sector.
The transaction was valued at $78.62 a share, with Baker Hughes shareholders receiving $19 a share in cash and 1.12 shares of Halliburton stock.
The merger will create an instant powerhouse to give market leader Schlumberger (NYSE: SLB) a run for their money.
According to CNBC, on a pro-forma basis both Halliburton and Baker Hughes combined had 2013 revenue of $51.8 billion, more than Schlumberger’s $45.3 billion.
Halliburton is ready to divest business worth $7.5 billion in revenue if required by regulators because of any antitrust concerns.
Friday we originally reported talks of the deal, according to Oil Pro, then estimated to be worth $75 billion.