Halliburton has agreed to acquire oilfield services provider Baker Hughes in a stock and cash transaction, valued at $34.6bn.
Baker Hughes, which employs 61,000 people in over 80 countries, helps customers identify, evaluate, drill, produce, transport and process hydrocarbon resources.
The transaction combines two suites of products and services into a new offering for oil and natural gas customers.
The combined company’s 2013 revenue was $51.8bn with operations in over 80 countries globally.
After completion of the transaction, Baker Hughes stockholders will hold about 36% of the combined company, which will maintain the Halliburton name with headquarters in Houston, Texas.
Halliburton chairman and chief executive Dave Lesar will lead the combined company, which is estimated to save about $2bn per year in costs.
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By GlobalDataThe transaction, which is subject to regulatory approvals, is expected to be completed in the second half of 2015.
Lesar said: "The transaction will combine the companies’ product and service capabilities to deliver an unsurpassed depth and breadth of solutions to our customers, creating a Houston-based global oilfield services champion, manufacturing and exporting technologies, and creating jobs and serving customers around the globe."
Baker Hughes chairman and chief executive officer Martin Craighead said: "By combining two great companies that have delivered cutting-edge solutions to customers in the worldwide oil and gas industry for more than a century, we will create a new world of opportunities to advance the development of technologies for our customers."
Halliburton has agreed to sell businesses that generate revenue of $7.5bn to satisfy regulators and would pay Baker Hughes $3.5bn if the transaction is not cleared.
