Halliburton is reportedly considering the sale of Baker Hughes’s offshore fluid unit as the Houston-based companies try to win approval for their $35 billion merger.
Sources familiar with the matter told Bloomberg that Halliburton is considering divesting from Baker Hughes’s offshore drilling-and-completions fluids division and may also part with the majority of Baker’s completion systems.
The potential asset sales come as the companies try to win approval for their merger from the U.S. Department of Justice and the European Commission.
Neither of the companies has commented on the matter.
When the deal was announced last year, Halliburton said it was prepared to divest from businesses that generate annual combined revenues of $7.5 billion, although it expected regulators to require “significantly less” divestment.
In September, 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.
Those proposed sales joined the previously announced divestitures of Halliburton’s Fixed Cutter and Roller Cone Drill Bits, Directional Drilling and Logging-While-Drilling/Measurement-While-Drilling.
The European Commission extended its review of the merger earlier this month by 20 working days after Halliburton refiled its request for approval.
The merger is also still waiting to win clearance from the U.S Department of Justice.
The deal’s timing agreement with the Antitrust Division of the DOJ expired without a settlement and without the agency filing litigation to block the deal in December.
The DOJ informed the companies that it was not satisfied that their plans for proposed divestments addressed the agency’s anti-trust concerns.
Halliburton CEO and chairman Dave Lesar said in January that the company is continuing its discussions with competition authorities and recently “offered an enhanced set of divestitures in an effort to resolve competition-related concerns as soon as possible.”
Details about the new set of proposed divestitures have not been disclosed yet.
The merger was initially expected to close in the second half of 2015, but the closing date has now been pushed back to no later than April 30, 2016, as permitted under the merger agreement.