Complaint : U.S. V. Halliburton Co. and Baker Hughes Inc
Case 1:16-cv-00233-UNA Document 1 Filed 04/06/16 Page 1 of 38 PageID #: 1 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE UNITED STATES OF AMERICA, Civil Action No.: Plaintiff, v. HALLIBURTON CO., and BAKER HUGHES INC., Defendants. COMPLAINT The United States of America, acting under the direction of the Attorney General of the United States, brings this civil antitrust action to obtain equitable relief to prevent the acquisition of Defendant Baker Hughes Inc. by Defendant Halliburton Company. The United States alleges as follows: I. INTRODUCTION 1. Halliburton’s proposed acquisition of Baker Hughes would violate Section 7 of the Clayton Act, 15 U.S.C. § 18, because it would combine two of the three largest providers of oilfield services in the world, it would eliminate substantial head-to-head competition, and it would likely lead to higher prices and less innovation in this critically important industry. 2. Evaluating oil and gas reserves, drilling wells to reach those reserves, completing those wells, and extracting oil and gas from the ground are expensive, risky, time-consuming, and complex endeavors. They require many different products and services, including drill bits, Case 1:16-cv-00233-UNA Document 1 Filed 04/06/16 Page 2 of 38 PageID #: 2 drilling services, pumping, fluids, sand control, cementing, valves, plugs, and sensors. Halliburton and Baker Hughes, together with Schlumberger, are the “Big Three” -- the largest globally-integrated suppliers of these products and services. They compete to win the business of exploration and production (E&P) companies and to develop next generation technologies that will allow them to drill deeper and operate in ever-more challenging conditions.
[Show full text]