Baker Hughes in $5.5 billion acquisition

Houston-based energy services company Baker Hughes has agreed to acquire its smaller rival BJ Services for $5.5 billion, it has been announced. The deal, which could be concluded by as early as the fourth quarter of this year, will boost Baker HughesÔÇÖ position among the industryÔÇÖs other big players such as Schlumberger and Halliburton. Acquiring BJ Services, also based in Houston, will enable Baker Hughes to offer a wider range of servicesÔÇöa key capability that energy companies such as Exxon Mobil and Chevron are increasingly seeking when hiring contractors. The deal is the first big merger in the sector since the collapse of global energy prices last year. One of BJ ServicesÔÇÖ specialisms is pressure-pumping, a key method of boosting oil and gas production by injecting water and chemicals into wells. The technique is widely used for developing natural gas fields in the US. BJ Services is also a leader in hydraulic fracturing, which enables gas to be produced from dense rock formations. The number of drilling rigs operating in the US has begun to rise in recent weeks. Baker Hughes is currently the worldÔÇÖs third-largest oilfield services company, with operations in over 90 countries worldwide and around 40,000 employees. It spun off BJ Services in 1991, in order to focus on its core drilling business.  * ┬á┬á┬á┬á┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á *