Baker Hughes, the oil field service provider, is set to buy BJ Services in $5.5 billion deal that will boost revenue and cut costs.
From the Associated Press:
HOUSTON — Oilfield services company Baker Hughes Inc. said Monday that it will buy BJ Services Co. in a cash-and-stock deal valued at $5.5 billion that the company said will allow it to drive international growth and compete for projects of companies engaged in all phases of the oil business.
The acquisition is expected to produce $75 million in cost savings for Baker Hughes in 2010 and $150 million in 2011, and add to earnings per share in 2011.
Baker Hughes Chairman, President and CEO Chad C. Deaton said in a statement that the transaction will particularly help customers with unconventional gas and deepwater fields.
