HALLIBURTON IS BUYING BAKER HUGHES FOR $34.6 BILLION 2
On Monday November 17, the Halliburton Corporation announced that they will be buying Baker Hughes for $34.6 billion dollars. The Halliburton Company is the world’s second largest oil field services and production company, specializing in delivering a wide variety of products and services ranging from exploration, development, and the production of oil and gas, to oil and gas companies the world over, with locations in 80 countries, and over 80,000 employees representing 140 different nationalities Kelley, 2014). Baker Hughes, interestingly enough was Halliburton’s number three ranked competitor.
Halliburton’s SWOT analysis
Strength
* Considered one of the second largest oil-field services companies in the world * Global organization with locations in in over 80 countries * Has over 80,000 highly skilled employees * Products and services for maintaining the reservoir life cycle. * CSR initiatives and environmental programs have been undertaken aggressively * Strong brand name and brand equity
Weakness
* Government intervention on regulatory policies affect operational efficiencies * Lack of newly found oil reserves and escalating cost of operation
Opportunity
* Increasing fuel/oil prices * Increasing number of natural shell oil gas wells * An increasing number of oil wells * Developing countries growth infrastructure presents more opportunities for construction equipment and auto mobiles that use natural gas
Threats
* Government regulations placing strains on operational efficiencies * Intense competition from global oil fields services companies * Social and environmental concerns causes adverse reactions * Uncertainty of global financial downturn

Competitors * Schlumberger * Weatherford International
HALLIBURTON