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Brussels - Halliburton has been given more time by the European Union to come up with a package of asset sales that will assuage competition concerns over its takeover of oilfield services rival Baker Hughes.
The company said on Wednesday that it would offer the remedies soon, after the EU pushed back the deadline for reviewing the deal by 20 working days to June 23.
"Halliburton believes the extension will facilitate the commission’s review of a remedies package, which will be formally offered by the company in the near future in order to address the commission’s concerns," said Emily Mir, a spokeswoman for the Houston-based company.
The EU merger authority opened an in-depth probe into the deal on January 12, citing concerns that combining the second- and third-largest suppliers to oil exploration companies may impede competition and increase prices.
Halliburton last month expanded a list of assets to sell to try to convince antitrust authorities across the world that the deal won’t harm competition. The oilfield services company said it presented its new plan to the US Justice Department in January. It didn’t disclose what new assets it’s planning to divest.
The cash and stock deal was valued at $34.6bn when it was announced near the end of 2014, just as oil prices had begun their downward spiral. Shares of both companies have dropped more than 30% since then.
Halliburton would have to pay Baker Hughes a breakup fee of $3.5bn if the bid is dropped.
