OILFIELD Services giant Halliburton will be compelled to offload three separate businesses before acquiring fellow oilfield services firm Baker Hughes.
The US$35 billion cash and scrip merger was first announced in November 2014, and was approved by shareholders of both companies in April.
Halliburton chairman and chief executive Dave Lesar said the company was looking forward to establishing what he called a bellwether global oilfield services company.
However, the deal still requires the approval of US anti-trust regulators, with the company moving to offload some extra assets.
The groups up for sale are Halliburton’s fixed cutter and roller cone drill bits business, its directional drilling arm and its logging-while-drilling (LWD)/measurement-while-drilling (MWD) business.
“Although we would prefer to retain these assets, we will be required to divest some of our overlapping businesses to obtain competition authorities’ approvals as anticipated when we announced the Halliburton-Baker Hughes transaction,” Mr Lesar said.
Halliburton said the final sale of these businesses will not be completed until competition authorities approved its acquisition of Baker Hughes.
“Thanks to employees’ hard work, these businesses represent strong products and services in the oilfield services industry, and we believe the value inherent in these businesses will be recognised by prospective buyers.”
Halliburton will continue to operate all businesses until their sale is complete.
The company expects to complete the sale of the businesses in the same timeframe as the closing of the pending Baker Hughes acquisition, late in the second half of 2015.