Offshore oil rig
The Justice Department is planning to file a lawsuit to block a proposed merger between Halliburton and Baker Hughes. Via Reuters, antitrust regulators appear to be concerned that the merger would slow down technological innovation in the oilfield services business amid less competition. Justice Department officials are also said to worry that the deal would lead to higher prices.
Halliburton would owe Baker Hughes a $3.5 billion breakup fee if the deal fails to clear regulatory hurdles. The merger was valued at $35 billion when it was announced in November 2014, but has since fallen to $25 billion based on a drop in Halliburton’s share price.
MORE DRILLING & EXPLORATION: Judge rules bankrupt oil and gas firm can break pipeline contracts
