Dow Jones reported today that Halliburton may buy Baker Hughes. The companies are two of the largest oil field service companies in the world. Prior to the announcement it has been stated that Baker Hughes is worth around $22 billion dollars. Halliburton has an estimated worth of $47 billion. Both companies currently have declined to comment on the acquisition.
If the two companies combine it would create a drilling conglomerate worth an estimated $67 billion. Baker Hughes employs 61,000 people. Halliburton employs 80,000. Schlumberger, the industry’s current leader, is worth $125 billion.
This rumor comes on the tails of a ‘oil price panic’ due to rapidly dropping oil prices. Most industry leaders are not only banking on prices going back up, but they are assuring investors and journalists alike that they will. This merger would be one of the largest in recent energy industry history.