Oilfield service provider Baker Hughes to acquire BJ Services for $5.5 billion
31 Aug 2009
Baker Hughes, the world's third-largest oilfield services company behind Schlumberger and Halliburton, is acquiring rival oilfield-services provider BJ Services for $5.5 billion in a cash-and-stock deal.
The Houston, Texas-based oil services company said that the acquisition represents a premium to BJ Services stockholders of 16.3 per cent over the closing price of BJ Services stock on 28 August 2009.
Under the agreement, BJ Services stockholders will receive 0.40035 shares of Baker Hughes and cash of $2.69 in exchange for each share of BJ Services common stock.
Upon closing, and reflecting the issuance of new Baker Hughes shares, BJ Services stockholders collectively will own approximately 27.5 per cent of Baker Hughes' outstanding shares.
Baker Hughes provides the world's oil and gas industry with products and services for drilling, rigs, formation evaluation, completion, production and reservoir consulting. Baker Hughes operates in over 90 countries worldwide mainly based in countries with a petroleum industry.
"The transaction further enhances Baker Hughes' position as a top-tier global oilfield services company," said Chad Deaton, Baker Hughes chairman, president and chief executive officer.
