If Halliburton-Baker deal is facing hurdles here in the U.S., imagine what the EU and China regulator are looking to do?
I think that Halliburton is having second thoughts, delaying things and is watching if Baker's business can recover in the past few months.
Looking at Halliburtons revenue, most of its pain was in the North American operations. And it got hammered in the fracking department. I was on the impression that baker was more U.S. Orientated, and took a bigger beating than Schlum or Hal.
But Baker is winning new work internationally. In Norway, it won a several hundred million dollar contract to deliver a whole package of services. Drill Bit, directional, cementing etc. So it is able to encroach on Halliburtons businesses world wide, but has allot of Liabilities back home. What should Halliburton chose?
Halliburton outlook is confounded, the world is going Rotary Steerable. Whether it's needed or not, the customer is sold by the sales pitch. Companies are trying to sell a package of services to the oil companies, and a package of services will create efficiencies, as the brochure reads. The time spent drilling gets the most scrutiny, whether warranted or not. Other issues aren't remembered much in the long term.
This is Halliburtons pickle. Get Baker, but get stuck with it North Americian liabilities. Don't take Baker, and have baker chip away at Halliburton internationally, with better reputation for Drill Bits and Motors.
The cancellation of the merger is going to Cost Halliburton 3 billion. A better use of 3 billion would have to invested the 3 billion in drill bits, motors, and Logging while drilling technology. Confidence in top management is hard to find.