The pending merger between Halliburton and Baker Hughes promises to be one of the most highly scrutinized corporate combinations in the history of the oil and gas industry. Not only will the deal create, by some metrics, the largest provider of oilfield products and services in the world, it will irrevocably alter the balance of power for a customer base accustomed to long-standing rivalry among its largest suppliers.
Notwithstanding Halliburton CEO Dave Lesar’s contention that initial customer feedback regarding the deal was unanimously positive, customers have a right to be concerned any time two competitors of this size merge. Transformational transactions tend be troublesome for both shareholders and customers, and we suspect this deal could present its fair share of challenges. Continue reading “Halliburton’s Risky Bet on Consolidation”
