Baker Hughes and Western Atlas complete merger
- Publisher
- Elsevier Science
- Year
- 1998
- Tongue
- English
- Weight
- 124 KB
- Volume
- 1998
- Category
- Article
- ISSN
- 1365-6937
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✦ Synopsis
BAKER HUGHES AND WESTERN ATLAS COMPLETE MERGER
The merger of Baker Hughes and Western Atlas has been completed following approval by the shareholders of both companies. The transaction is valued at approximately US$4.8 billion, including the assumption of US$1.3 billion in debt. The combined company's revenues for the 12 months ended 30 June 1998 were approximately US$6.4 billion. Max L Lukens, chairman and CEO of Baker Hughes, said that in bringing Baker Hughes and Western Atlas together, they have combined leadership in recovery and in discovery. He said the new company would build on its strong technology positions to create integrated systems to enhance the value of the reservoir. He added that Baker Hughes was strategically oriented in what they believe are the fastest growing segments in the industry with the highest return potential.
John Russell, former CEO and president of Western Atlas, and now president of Baker Hughes, said that the combination of reservoir-knowledge, with recovery capabilities in drilling, completion and workover, positions the new company for growth.
Baker Hughes' oilfield divisions will now be organised into two operational groups that will be focused on product and service technology leadership, and systems development. One group, composed of Western Geophysical, Baker Atlas and Inteq will report to Thomas R Bates Jr, senior vice president. The second group, reporting to Andrew J Szescila, senior vice president, will include Baker Oil Tools, Baker Petrolite, Hughes Christensen, and Centrilift. All other divisions will report directly to Lukens.