Halliburton and Baker Hughes, numbers two and three respectively in the global oil services market, have agreed to a $34.6bn merger that will see Baker Hughes stockholders own about 36% of the combined company after receiving 1.12 Halliburton shares plus $19 in cash for each Baker Hughes share they own. The transaction values Baker Hughes at $78.62 per share as of 12 November, about 54% higher than Baker Hughes’ stock value at the end of trading that day.

In a joint statement, the two firms said that they expect the deal to close in 2H 2015, though the timeline is somewhat uncertain. The merger is subject to the approval of both companies’ boards. Halliburton says it will finance the cash portion of the acquisition through “cash on hand and fully committed debt financing.” (CONTINUED - 928 WORDS)