Research Insights and the Halliburton-Baker Hughes Merger

“RESEARCH INSIGHTS AND THE Halliburton-Baker Hughes Merger,” Yvonne Taylor, Gustavo Grullon and Vikas Mittal, Jones Journal, Spring, 2015, 30-33.

4 Pages Posted: 29 Apr 2015

See all articles by Gustavo Grullon

Gustavo Grullon

Rice University - Jesse H. Jones Graduate School of Business

Vikas Mittal

Rice University

M. Yvonne Taylor

University of Texas at Austin

Date Written: April 2015

Abstract

Conventional business wisdom states that mergers make business sense. Merging firms can cut costs by reducing redundancies and consolidating operations, expanding their scope and market share, and freeing up capital for further growth. Last November, Halliburton and Baker Hughes, the second and third largest oilfield services firms in the world decided to merge. According to Halliburton, the deal, the biggest takeover of a U.S. energy company in three years, will consolidate operations, provide cost savings and align and expand their customer base. Halliburton’s CEO Dave Lesar has said that the merger could save the merged entity as much as $2 billion a year. And with lower oil prices and mounting pressures on margins, such a merger may make even more sense. But despite the many opportunities for business success, mergers are complicated and risky business.

Suggested Citation

Grullon, Gustavo and Mittal, Vikas and Taylor, M. Yvonne, Research Insights and the Halliburton-Baker Hughes Merger (April 2015). “RESEARCH INSIGHTS AND THE Halliburton-Baker Hughes Merger,” Yvonne Taylor, Gustavo Grullon and Vikas Mittal, Jones Journal, Spring, 2015, 30-33. , Available at SSRN: https://ssrn.com/abstract=2600087

Gustavo Grullon

Rice University - Jesse H. Jones Graduate School of Business ( email )

P.O. Box 2932
Houston, TX 77252-2932
United States
(713) 348-6138 (Phone)
(713) 348-6331 (Fax)

HOME PAGE: http://www.ruf.rice.edu/~grullon/

Vikas Mittal (Contact Author)

Rice University ( email )

6100 South Main Street
250 McNair
Houston, TX 77005-1892
United States

M. Yvonne Taylor

University of Texas at Austin ( email )

Austin, TX 78712
United States

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