This is more a hostile takeover than a buyout no? Halliburton attempted to replace the entire board of directors of baker hughes because negotiations had stalled on the original merger.
This is big news on the real estate front. Earlier this year Baker was out to the market with a 200,000 SF RFP for a new design build facility with Avison Young. I don’t think the deal is done and everyone is trying to figure out if this purchase will kill the Baker’s space requirement.
This is big news on the real estate front. Earlier this year Baker was out to the market with a 200,000 SF RFP for a new design build facility with Avison Young. I don’t think the deal is done and everyone is trying to figure out if this purchase will kill the Baker’s space requirement.
The ongoing consolidations like this make one wonder what the world will be like in a few decades. My dad started with Dresser Atlas around 1970 which was itself a merger of two prior companies-- and that entity was eventually acquired twice and on the second time was part of Baker Hughes.
I suppose this is necessary to compete with the economy of scale Schumberger has?
I hang my hat over at big blue (or big red now lol) so it should be interesting to see how this plays out in the long run. Hopefully it turns into a win win as I think both companies coming together will make for a powerful service company.
The way to make money merging two big companies like this is to combine operations and eliminate redundancies. And some workers will, to use a British idiom, find themselves made redundant. That's the headline for employees in Houston, where both companies have major operations.
If you're a logistician, an office manager or executive assistant at Halliburton or Baker Hughes, then you should be updating your LinkedIn account and resume. Page nine of a presentation released Monday shows that of the $2 billion in cuts the combined company expects to make, 31 percent will be in North American operations, 18 percent will be in administration and 9 percent in corporate.
Of all the megamergers announced this year, Halliburton Co. (HAL)’s $35 billion takeover of Baker Hughes Inc. (BHI) is promising the most aggressive cost cuts.
Halliburton, an oilfield-services provider, says it can slash $2 billion after acquiring its similar-sized rival. That’s the biggest estimate of any deal valued at $20 billion or more that’s been announced this year, according to data compiled by Bloomberg. Even deals twice its size -- such as Comcast Corp.’s purchase of Time Warner Cable Inc. and Actavis Plc’s merger with Allergan Inc. -- are projecting fewer synergies.
The term synergies is investment-banking jargon for how much money can be saved from firing people with overlapping responsibilities and eliminating other redundancies that come from combining two businesses.
They looked at bother markets. My understanding is that there was a large industrial component to the RFP so chances are it would have landed in the suburbs. Similar to what ABB is doing right now.
Often times when these things take place the closer you are to the wellhead the safer you are.
That's probably true, but you still better be prepared to jump to another ship. There are still x number of rigs/wells to be serviced in a given market. It's just that the mix of service providers that are doing the work might change.
In the Canadian pumping services market, Halliburton is a relatively small player compared to the other markets they operate in. But Baker just finished buying up BJ which is the legacy of Nowsco and Fracmaster, which still have a lot of loyal followers, inexplicably. Halliburton is probably more concerned with the US market than Canada, but this automatically makes them a much bigger player in Canada. I think they likely let Canada run as it has for the most part, with some redundant management positions being cut.
The bigger changes will be in the US and overseas. With my position in Abu Dhabi, my head is kind of spinning trying to figure out what this will mean (I don't work for either company). BJ is only beginning to stabilize after being bought by Baker. Now they're being swallowed by a direct competitor. Interesting times.
Huge news. I always thought Baker Hughes was one of the truly "untouchables".
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Halliburton Agrees to Buy Baker Hughes
