Halliburton buying rival for $34.6B


ABC NEWS: Low gas prices spur company to acquire Baker Hughes.

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ABC NEWS: Low gas prices spur company to acquire Baker Hughes.

Global oil prices have tumbled 31 percent over the past 5 months to levels not seen in four years. That has forced the industry cut costs by delaying or scaling back drilling — which means less work for Halliburton and Baker Hughes, companies that manage oil and gas fields for energy companies.

Even when prices were high, oil and gas companies had begun to slow capital spending and new drilling as rising costs cut into profit margins. Energy companies now have even less to spend.

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