Australia flags concerns on US$35b Halliburton bid for Baker Hughes

Australia's competition watchdog on Friday raised concerns about Halliburton Co's proposed US$35 billion takeover of rival Baker Hughes Inc , saying it was likely to hurt competition in a number of oilfield goods and services markets. 

PHOTO: BLOOMBERG

OCT 23, 20157:16 AM

[MELBOURNE] Australia's competition watchdog on Friday raised concerns about Halliburton Co's proposed US$35 billion takeover of rival Baker Hughes Inc , saying it was likely to hurt competition in a number of oilfield goods and services markets.

"The ACCC is concerned that the acquisition would result in the merged entity being one of only a small number of suppliers that could service the relevant markets," Australian Competition and Consumer Commission Chairman Rod Sims said in a statement.

"The ACCC is particularly concerned in relation to the supply of complex or high-risk projects, such as off-shore drilling projects."

The commission had initially expected to issue a decision by July 9 but postponed that twice while collecting extra information from both companies.

The two companies, which both provide services, technology and systems to the oil and gas industry in Australia and other countries, are aiming to close their merger by Dec 16 but have said the date could be extended into 2016.

REUTERS