Baker Hughes waits for DOJ approval of BJ takeover

HOUSTON

Oil services company Baker Hughes Inc. on Monday said the U.S. Department of Justice has yet to approve its proposed $5.5 billion acquisition of BJ Services Co, and that may push back its scheduled March 19 shareholder meeting.

While the deal has received approval from foreign jurisdictions, it has not yet received the required approval from the antitrust division of the U.S. Department of Justice, which has raised issues regarding the overlap between the stimulation and sand control businesses of Baker Hughes and BJ Services in the Gulf of Mexico.

"There is a significant likelihood that all matters will not be finalized prior to the March 19 meeting of stockholders," the company said. Under such circumstances, the companies plan to convene and then immediately adjourn the stockholder meetings until a later date.

The two oil services companies announced the deal in August.

The combined company will provide customers with a one-stop shop for a variety of oilfield services, and allows Baker Hughes to diversify its product offering and to compete better with rivals Schlumberger Ltd. and Halliburton Co.