Baker Hughes, Halliburton merger under scrutiny

WASHINGTON, April 6 (UPI) -- Baker Hughes and Halliburton, two energy services companies looking to merge, each offered firm statements of "no comment" on Justice Department pressure.

The Wall Street Journal reported Wednesday the U.S. Justice Department is drafting a lawsuit that would block the proposed merger between the two oilfield services companies, which are the top in the industry behind counterpart Schlumberger Ltd.

When asked by UPI to confirm, deny or issue a statement in response to the Justice Department concerns, representatives from each company were firm in their response.

"No comment," was all a Halliburton spokesperson would offer in an emailed response, following repeated queries. "We don't have any comment on the reports," a spokesperson for Baker Hughes said by email.

The European Union has expressed concerns the merger of the two companies would impact competition in the regional energy sector.

"Halliburton and Baker Hughes remain focused on completing the regulatory approval process and closing the transaction in order to begin realizing the benefits of the proposed combination for shareholders, customers, employees and other stakeholders," the companies said in January.

Competition officials in the European Union told UPI in February the clock was stopped on the review process while it waited for the companies to come forward with requested information regarding its concerns.

Several major energy companies announced plans to merge with industry counterparts in an effort to navigate a market where crude oil prices are about 40 percent lower than last year. Scottish oilfield services company Wood Group in December acquired energy field services company Kelchner Inc., a U.S. company working in the Marcellus and Utica shale basins in the eastern United States.

Schlumberger, the world's largest oilfield services company, announced earlier this week it closed on its merger with its smaller industry counterpart Cameron International Corp.

Halliburton in February said it was cutting 8 percent of its workforce in response to a weak energy sector.