Jeff Ubben and ValueAct Capital targets Halliburton (HAL) and Baker Hughes (BHI) have been trying to merge for over a year.
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This comes as the deal is facing more and more antitrust concerns from the U.S. Justice Department, not to mention a number of other authorities from around the globe.
This comes as oil is still in the tank and companies aren’t drilling much anymore. That’s making it hard to find buyer for the assets that Halliburton and Baker Hughes need to dump in order to get the merger approved. The deadline for the European Commission to opine on the deal is Jan. 12. Brazil and China have yet to offer an opinion.
Then there’s the issue of whether the companies buying these assets can even become credible rivals over time.
“Everything about this deal has turned out to be more complicated and, frankly, more challenging than what was initially envisioned.” -Simmons & Co. International
Ubben still plans to get the deal done by any means necessary, which will include selling off Halliburton assets at deep discounts. Halliburton is on the hook for a $3.5 billion breakup fee if their merger is blocked.
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