"Halliburton Co. is in talks to buy Baker Hughes Inc. in a deal that would combine two of the largest and oldest names in the energy business as plunging oil prices send the industry into a downturn.

By eliminating a competitor, Halliburton, already the world’s second-biggest provider of oilfield services, would gain market clout that would help insulate it from a sustained market decline. A combination of Halliburton with No. 3 Baker Hughes would be a little more than half the size of larger rival Schlumberger Ltd.

'The two gorillas in the room are getting together,' said Ed Hirs, who lectures on energy economics at the University of Houston. 'Halliburton and Baker Hughes would have been competing more strenuously to maintain market share in the downturn, but this will make that easier.'"

David Wethe, Bradley Olson and Matthew Monks report for Bloomberg News November 13, 2014. [2]

SEE ALSO:

"Fracking Blast Kills One Halliburton Worker, Injures 2 in Weld County" (Denver Post) [3]