http://www.thestreet.com/story/13405268/1/halliburton-baker-hughes-merger-has-fair-shot-at-regulatory-approval.html
10 replies (most recent on top)
Two years in a row would be a bummer, but still beats the alternative.
Houston oil and gas companies likely to freeze pay in 2016.
I don't believe there is a legal case to stop the merger in the US regards to operations within it's border. The DOJ legally can only be concerned by any ramifications inside the US. And apparently it is only the fracking operations that may be of a concern for the DOJ. (Excluding previously discussed divestures.)
It is a game of who can blink first. Brazil doesn't want the merger, but wouldn't want to spend it's political capital on vetoing the merger if other nations will anyways.
Petrobas is loaded with debt, and their is public outcry that some of these service contracts were awarded via bribes. It is the only country feeling political pressure to veto the merger.
Brazil is no stranger stopping major agreements from emerging. It was the country the prevented the Free Trade Agreement of the Americas (FTAA) years ago.
Lol. Who really cares now. Baker/Halliburton were two good company's. Now gutted with powerpoint presentation people .yes people .Most of the solid good experienced people are gone.
So who really cares if Halliburton buys baker.
Its too late.
The two companies are American but just as the US has jurisdiction over companies who are registered or have an interest in the United States, Europe has jurisdiction over both Halliburton and Baker Hughes because they have operations within European borders. This reach extends inside the United States as well.
It might be worth waiting out another year until after the elections next year. The Obama administration is not interested in this merger anyways.
I don't think DOJ is waiting for other jurisdictions. The other jurisdictions waiting on DOJ seems more likely. MC had a town hall at our location a few weeks ago and said it was his understanding that other jurisdictions would likely view the merger of two largely American companies to be largely a DOJ decision.
The author basis's his optimism on two previous cases. Though these example were purely a domestic issue.
The obstacles facing this merger are international in nature. Primarily Europe, Brazil & Australia.
A major reason for the DOJ deferral, was that it was waiting for these countries rulings before proceeding with it's own.
If Europe decides to halt the merger, why waste resources trying to halt the decision yourself in court. (If Europe opposes the merger, it doesn't go to Court like the US, it is just stopped.)
Makes you wonder when all this started. The top management global forecast was wrong on all counts. The BOD. Made a huge mistake.
What would the merger have accomplished though. The oil industry will not start to recover until 2019