According to the Wall Street Journal, Halliburton Co. is currently engaged in talks with the goal of acquiring Baker Hughes Inc.. These organizations represent two of the largest oil field service companies in the global industry, and if an agreement is reached, the deal is projected to be valued at more than $25 billion.
Although the Wall Street Journal reports that "talks are moving quickly and a deal could be forged soon," there is always the concern that regulators may not allow the acquisition to move forward. The organization resulting from the merger is expected to dominate the majority of market aspects. Already, they control about half of the market for cementing, according to petroleum-services research firm Spears & Associates Inc. The two companies operate in more than 80 countries, many of which have recently adopted new legislation aimed at promoting regulatory oversight of energy producers, which could impact the decision.
Both companies are currently headquartered in Houston, and have a combined workforce in Houston of more than 15,000 employees, and a combined worldwide workforce of 140,000 employees. Lower oil prices have forced many oil producing companies to consider consolidation, and there is significant overlap in the services Halliburton and Baker Hughes provide.
"Literally, every product or service one of these companies offers, the other one offers," Richard Spears, Spears & Associates president told the source.
In the event of a merger or acquisition, change management consulting can help ensure that teams are properly aligned to revised goals and understand their new roles. Resistance to change from the workforce can quickly sap productivity at a vulnerable time in an organization's history, making it crucial that all concerns are addressed and teams see the value of the change.