EU regulators have resumed their investigation of Halliburton's acquisition of Baker Hughes. Authorities want to prevent the plan, saying that the merger deal is uncompetitive.
According to Bidness, the oil and gas service came under fire from the US Department of Justice and went as far as filing a lawsuit against the merger, which involves the amalgamation of the two of the world's largest players in the oil sector. The DOJ feels that both companies have overlapping businesses, compromising the competition in the industry.
Last month, the EU commission halted its scrutiny into the $35 billion deal while waiting for more details from the companies and will decide by August 11 whether to veto or clear the merger. Ricardo Cardoso, the spokesman of the commission said in an email that once the requested missing information is provided, the commission restarts the clock.
Halliburton agreed to purchase Baker Hughes in cash-and-stock agreement in 2014, reports Bloomberg. The agreement was scheduled to close last year but has been delayed as the companies grapple with antitrust concerns in Europe and in the US.
Margrethe Vestager, EU's antitrust chief, pleaded with merging companies to be transparent with officials reviewing the agreement. The EU method is "based on the trust that everyone plays by the rules", says Vestager. Although Vestager wasn't specifically referring to Halliburton, she has described the agreement as complicated to examine.
The EU antitrust officials have previously reiterated concerns that the merger may reduce innovation and competition. Reuters reported that it is willing to sell assets from both companies with a combined 2013 revenue of $5.2 billion, but is yet to make a formal offer to regulators.
The US Justice Department already filed a lawsuit last week to stop the merger, saying the process would leave only two dominant suppliers in 20 business lines in oil construction services industry and global well drilling.
