While neither Halliburton nor Baker Hughes has commented publicly, “talks are moving quickly,” media outlets are reporting.
A deal of this magnitude would likely prove to be one of the largest in recent years as the combined company would have an estimated market cap of more than $71 billion. Nevertheless, Schlumberger Ltd. is expected to maintain its leading position with a market cap over $122 billion.
Shares of Baker Hughes rose sharply by 15% following the news to $58.75. Shares of Halliburton were up 1% to $53.79.
Baker Hughes, formed in 1987 with the combination of Baker International and Hughes Tools Co., employs more than 60,000 people, while Halliburton employs 80,000, according to the respective websites.
Halliburton's total revenue in the third quarter of 2014 was a record $8.7 billion, an 8% improvement compared to $8.1 billion in the second quarter of 2014, and a 16% improvement compared to $7.5 billion in the third quarter of 2013.