The European Commission has initiated a Phase II review of Halliburton’s (NYSE: HAL) pending acquisition of Baker Hughes (NYSE: BHI). Halliburton and Baker Hughes have stated that the companies will continue to work constructively with the Commission.
This decision is a normal step in the Commission's review process, and the views expressed by the Commission at this stage are preliminary only. Pursuant to applicable regulations, Phase II generally provides the Commission with 90 working days to review the pending transaction.
Although the Commission was kept informed of the remedies that Halliburton has proposed to the US Department of Justice, Halliburton did not offer remedies during Phase I, as it believes that offering remedies during Phase II will facilitate a more efficient review. Halliburton expects to offer a substantial remedies package that it believes will address any substantive competition concerns.
To date, the transaction has received regulatory clearances in Canada, Colombia, Ecuador, Kazakhstan, South Africa, and Turkey.
Halliburton and Baker Hughes remain focused on completing the regulatory approval process and closing the transaction in order to begin realizing the benefits of the proposed combination for shareholders, customers, employees, and other stakeholders.