Hello. I’m Mark McCollum, chief integration officer at Halliburton.
I’d like to take just a moment to brief you on the progress of the pending Baker Hughes acquisition.
Our Joint Integration Team is hard at work planning for a seamless integration of our two companies. Teams that include members from each of our Functions , Product Service Lines and Regions are reviewing best practices and each company’s processes, systems and business activities as quickly as possible, to create a plan to bring everything together following the close of the pending transaction.
Over the past few months, I had the opportunity to meet with a number of employees during regional roadshows in North America, Latin America and the Eastern Hemisphere. It was great to meet with employees and hear their excitement and optimism about the deal. This is truly a historic event for our Company.
We continue to work on gaining the approval of competition authorities around the world.
We have extended the timing agreement with the US Department of Justice by three weeks and, accordingly, Halliburton and Baker Hughes agreed to extend the closing date under the merger agreement to December 16. Outside the US, we continue to make progress completing the required filings and obtaining the necessary approvals. To date, the pending acquisition has received unconditional regulatory clearances in Canada, Colombia, Kazakhstan, South Africa, and Turkey.
Specific to the European Union, we are working cooperatively to respond to all information requests and expect to resubmit our filing in the near future which will start the formal review process.
As a necessary step in the regulatory approval process, both companies will be required to divest certain businesses in order to complete the pending acquisition.
Halliburton intends to sell its fixed cutter and roller cone drill bits, directional drilling, logging-while-drilling/measurement-while-drilling , and expandable liner hangers businesses.
Baker Hughes intends to divest its core completions business, its sand control business in the Gulf of Mexico—including two pressure pumping vessels— and its offshore cementing businesses in Australia, Brazil, Norway, the UK, and the Gulf of Mexico.
We anticipate the sale of these businesses to be conditioned on and completed in the same timeframe as the closing of the Baker Hughes acquisition.
As we announced in our recent earnings call, we continue to target a 2015 close for the deal but recognize there are certain items outside of our control that could cause the transaction to close in 2016, which is allowed under the merger agreement. Now, this is no way changes that we remain confident the deal will be approved by applicable competition enforcement authorities.
Each of you has a very important role in the integration process. It will be your job to help create the most welcoming environment for the thousands of Baker Hughes employees who will join our company in connection with the acquisition. Change isn’t easy and there are certainly differences in our two cultures, but by being respectful and inclusive we can make the transition into one company a positive and rewarding experience for everyone.
We have great employees at Halliburton, and Baker Hughes also has really strong talent. I know by integrating our teams and learning to work together we can build a true winning organization.
Thank you for your time. We will continue to bring you information on the integration process as appropriate.