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Examination Of The Halliburton, Baker Hughes Merger: Part 1

When oil goes down, deals go up. This is how history has presented itself in the energy sector. For an example, in the 1990's there was a drop in the price of oil that led to a consolidation of major oil companies around the global economy. The trough of the price of oil, as history has supplied us, guides energy companies to mergers and acquisitions. The last major mergers and acquisitions of the energy sector in the late 1990's, early 2000's, led to the consolidation of; BP acquiring Amoco and Arco, Exxon buying Mobil, Chevron procuring Texaco, Conoco obtaining Phillips, and Total attaining Elf.

On November 17th, 2014, Baker Hughes (BHI) agreed to be bought by their rival Halliburton (HAL). The $34.6 billion dollar deal initially valued BHI at $78.62 per share. For each share that investors hold in BHI they will be paid $19 in cash and 1.12… Read More …