Oil field services giant Halliburton is planning to sell three drilling businesses shortly after federal regulators approve the company’s acquisition of Baker Hughes, with a likely date sometime late in 2H 2015, the company said Tuesday.
The drilling businesses, which Halliburton will be selling separately, are the company’s fixed cutter and roller cone drill bits business, the directional drilling business, and the 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,” said Dave Lesar, chairman and chief executive officer of Halliburton.
According to Halliburton’s quarterly segment results, the drilling and evaluation category under which the drilling businesses to be sold fall generated a little over $12.6 billion in revenue in 2014, with an operating income/loss of just over $1.67 billion.
Halliburton agreed in November 2014 to buy Baker Hughes for about $34.6 billion, assuming the deal passes muster with antitrust officials. The merger is expected to help Halliburton and Baker Hughes provide stiffer competition against Schlumberger, the leader in oil field services.