UPDATE 1-Baker Hughes eyes asset sale for DoJ BJ deal ok

Tue Mar 30, 2010 9:28pm EDT

* Reached general understanding with DoJ

* Sees deal closing in early April

* Sees sale of two stimulation vessels, other assets

* Sees no material impact from divestitures

NEW YORK, March 30 (Reuters) - Baker Hughes Inc (BHI.N) said on Tuesday that it was finalizing an agreement with the U.S. Department of Justice under which it would have to sell some assets as a condition for approval of its plan to buy smaller rival BJ Services Co BJS.N for $8.4 billion.

Oilfield services company Baker Hughes said that under an understanding it reached with the DoJ, it would need to sell two stimulation vessels and other assets used in the U.S. Gulf of Mexico after the BJ services deal closes.

A final judgment, which the companies are currently working on with the DoJ antitrust division, would need to be approved by the Federal District Court in Washington DC before the deal can close. Shareholders also need to vote on the acquisition.

Both companies plan to go ahead with special meetings for shareholders to vote on the deal and related matters on March. 31. The meetings had originally been scheduled for March 19, was postponed because the companies were waiting for DoJ approval for their deal.

The companies now expect to be able to close the deal in early April if it is approved by shareholders, Baker Hughes said in a statement, adding that it does not expect the divestiture to be material to the combined company. (Reporting by Sinead Carew; Editing by Bernard Orr)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.