Halliburton and Baker Hughes Inc. announced plans Monday to sell off additional businesses to gain regulatory approval for their $35 billion merger.
The oil field services giants said they will put up for sale an array of businesses including Halliburton’s expandable liner hangers business which is part of the company’s completion and production division and Baker Hughes’ core completions business, which includes packers, flow control tools, subsurface safety systems, intelligent well systems, permanent monitoring, sand control tools and sand control screens.
Also targeted for divestment are Baker Hughes sand control business in the Gulf of Mexico, including two pressure pumping vehicles, and its offshore cementing businesses in Australia, Brazil, the Gulf of Mexico, Norway and the United Kingdom.
These businesses coupled with the other previously announced divestitures — Halliburton’s fixed cuter and roller cone drill bits, directional drilling and logging-while-drilling/measurement-while-drilling businesses — brought in a combined revenue of $5.2 billion in 2013, the year before the merger was announced.
Halliburton said its making on progress on those divestitures. On Friday, the company received proposals from several potential buyers for each, the company said in a statement.
Regulators have not said whether the proposed slate of divestitures is enough to satisfy anti-competitive concerns and Halliburton and Baker Hughes pledge to continue to work with the authorities as they push forward with the deal, the statement said.
The U.S. antitrust review of the deal has been extended by three weeks to Dec. 15, giving the companies more time to comply with Department of Justice requests. The companies still expect to close the deal this year but said they can push back closing until next year, if necessary.
The newly announced slate of divestitures is smaller than the ones previously announced, but the offshore cementing and completions businesses should attract “plenty of suitors,” investment banking firm Tudor, Pickering, Holt & Co. wrote in a note Monday. Both companies appear committed to getting the deal to cross the finish line, the analysts said.