Date
17 October 2017
The proposed merger between Halliburton and Baker Hughes fell apart Sunday, the latest in a stream of deals that failed this year. Photo: oilandgas360.com
The proposed merger between Halliburton and Baker Hughes fell apart Sunday, the latest in a stream of deals that failed this year. Photo: oilandgas360.com

2016 already a record year for failed US deals

This is already a record year for failed mergers and acquisitions in the United States, The Wall Street Journal reports.

Halliburton Co. and Baker Hughes Inc. called off their nearly US$35 billion deal Sunday after facing resistance from regulators.

That brought the value of withdrawn US deals so far this year to US$378 billion, already a record high for a year, Dealogic data shows.

Buyers worldwide have canceled US$465 billion of deals so far this year, the second-highest level in the year to date since the figure for the same period in 2007 hit US$505 billion.

In March, China’s Anbang Insurance Group Co. Ltd. walked away from a US$14 billion proposal to buy Starwood Hotels & Resorts Worldwide Inc.

The failure of the Halliburton-Baker Hughes deal comes after Pfizer Inc. called off its US$150 billion tie-up with Allergan plc after the US Treasury introduced new rules further curbing inversions, in which US firms merge with foreign firms and move their headquarters overseas to save on taxes.

The stream of withdrawn deals is likely to continue. Unsolicited or hostile bids worth US$114 billion are still pending.

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