Halliburton president, CEO and chairman David Lesar. Image courtesy of UTEP Miners/Youtube.

Houston-based service firms Halliburton and Baker Hughes said Monday they will put more assets on the sale block as they approach the finish line for their $34.6 billion merger.

Halliburton said it intends to divest from its expandable liner hangers business, part of the company’s Completion & Production Division.

Baker Hughes plans to divest from its core completions business that includes packers, flow control tools, subsurface safety systems, intelligent well systems, permanent monitoring, sand control tools and sand control screens.

Baker Hughes will also puts its sand control business in the Gulf of Mexico, including two pressure pumping vessels, and its offshore cementing businesses in Australia, Brazil, the Gulf of Mexico, Norway, and the United Kingdom on the sale block.

The divestitures process for the previously announced divestitures of Halliburton’s Fixed Cutter and Roller Cone Drill Bits, Directional Drilling and Logging-While-Drilling/Measurement-While-Drilling businesses is continuing.

Halliburton said it received proposals from multiple interested parties for each business last Friday.

The combined 2013 revenue associated with all of the businesses intended to be divested was about $5.2 billion.

The sales will be subject to the negotiation of acceptable terms and conditions for the divestitures, the approval of the divesting company’s board of directors and final approval of the Baker Hughes acquisition by competition enforcement authorities.

Halliburton anticipates that the companies will complete the sales in the same timeframe as the closing of the acquisition.

The company added that the closing of the divestitures would be conditional upon the closing of the merger.

“There is no agreement to date with any competition enforcement authority as to the adequacy of the proposed divestitures,” the companies added.

The pending acquisition has received unconditional regulatory clearances in Canada, Kazakhstan, South Africa, and Turkey.

Halliburton and Baker Hughes said Monday they have amended their timing agreement with the Antitrust Division of the U.S. Department of Justice (DOJ) to extend the earliest closing date by three weeks.

The earliest closing date has been moved to December 15, 2015  from the current date of November 25, or 30 days following the date that both companies have certified final, substantial compliance with the DOJ second request.

In light of the timing agreement, Halliburton and Baker Hughes have agreed to extend the time period for closing the acquisition to no later than December 16, 2015.

The merger agreement also provides that the closing can be extended into 2016, if necessary.


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