ACCC Raised Concerns About Halliburton's Proposed Acquisition Of Baker Hughes

(RTTNews) - Australian Competition and Consumer Commission or ACCC on Friday said the Halliburton Co's (HAL) proposed acquisition of rival Baker Hughes Inc (BHI) is likely to raise competition concerns in a number of markets for the supply of oilfield goods and services. ACCC's final decision will be deferred until 17 December 2015.

The proposed acquisition is being considered by competition authorities in a number of jurisdictions, including the US, the European Union, India and China.

"The ACCC is concerned that the acquisition would result in the merged entity being one of only a small number of suppliers that could service the relevant markets," ACCC Chairman Rod Sims said in a statement.

"The ACCC is particularly concerned in relation to the supply of complex or high-risk projects, such as off-shore drilling projects," Sims added.

Halliburton and Baker Hughes are close competitors across a broad range of oilfield goods and services in Australia, and in many countries around the world.

"The ACCC also considers that the proposed acquisition may create conditions that would facilitate coordinated behaviour in the market," Sims said.