Halliburton Co. said it will buy Baker Hughes Inc. for about $35 billion in one of the largest oil and gas services acquisitions in history.
The deal is the second largest transaction in the energy sector this year, Reuters reported.
{mosads}The companies are the second and third largest in the oil and gas field industry and would create a corporation with more revenue than the current market leader, Schlumberger NV.
Halliburton chief executive officer Dave Lesar said in a statement that the deal “will create a bellwether global oilfield service company.
The resulting company will be “a Houston-based global oilfield services champion, manufacturing and exporting technologies, and creating jobs and serving customers around the globe.”
Demand for oilfield services has dropped in recent months as oil prices have fallen to historic lows. It caused executives and analysts to speculate over major acquisitions to help the industry weather the downturn, Reuters said.
Lesar said the combined company would be stronger and more able to withstand the cyclical nature of the business.
Halliburton is prepared to divest $7.5 billion in assets to satisfy antitrust regulators who will have to approve the acquisition.
But Lesar said he is confident it will clear all regulatory hurdles, Reuters said.