U.S. Service Companies Merger Delayed on Department of Justice Concerns

Halliburton will have to wait a bit longer for its planned $26 billion acquisition of rival Baker Hughes, Halliburton has said. In a statement, the American oil service company explained that there is no guarantee that an agreement with U.S. competition regulators will be found. 

The U.S. Department of Justice (DOJ) did not make a decision on Tuesday as previously envisaged, delaying the entire process on antitrust concerns. This is the second time the merger has hit a snag.

"The DOJ … does not believe that the remedies offered to date are sufficient to address the DOJ’s concerns, but acknowledged that they would assess further proposals and look forward to continued cooperation from the parties in their continuing investigation," reads a statement released on Tuesday. 

As a consequence, Halliburton extended the time for the closing of the transaction to April 30, 2016.

"The companies intend to continue their discussions with the DOJ, and remain focused on completing the transaction as early as possible in 2016, but there is no guarantee that an agreement with the DOJ or other competition authorities will be reached."