DOW JONES NEWSWIRES
Baker Hughes Inc. (BHI) and BJ Services Co. (BJS) received
clearance from the U.S. Justice Department to move along with their
pending $6.6 billion merger.
A blessing of the deal by the Justice Department held up
shareholders of both companies voting on Baker Hughes's planned
purchase of fellow oil-services provider BJ Services in recent
weeks. The holders Wednesday morning approved the merger.
Justice had raised concerns about the overlap of some Gulf of
Mexico businesses owned by the companies. As a result, several
divestitures in the region were required as a condition of
approval.
The deal, expected to close in early April, will make Baker
Hughes a more full-service company. BJ Services' pressure-pumping
business is considered a crucial component in developing
service-intensive shale natural gas fields.
Baker Hughes in January reported better-than-expected
fourth-quarter earnings as oil and gas activity picked up from the
prior quarter, though profit still tumbled 81% owing to weak
demand. BJ Services last month reported a swing to an unexpected
fiscal first-quarter loss as revenue and margins declined.
Baker Hughes's shares were up 1.7% in recent trading to $46.73
while BJ Services added 2.1% to $21.37.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037;
jodi.xu@dowjones.com