Halliburton, the world's second largest provider of oilfield services, has agreed to take over its rival Baker Hughes in a cash-and-stock deal worth $34.6 billion, AP reported.
The deal, worth $78.62 per Baker Hughes share (a 31% premium on the Friday closing price of $59.89), comes after Halliburton threatened a hostile takeover.
Baker Hughes shareholders will also receive 1.12 Halliburton shares and $19 in cash for each Baker Hughes share they own.
Halliburton plans to finance the cash part of the deal through cash on hand and debt financing, Bloomberg reported.
It is one of the biggest takeovers of a U.S. energy company in recent years. It allows Halliburton to eliminate one of its biggest rivals, as well as expand its business portfolio and global reach as the falling oil prices continue to impact the industry, Bloomberg reported.
The deal is expected to draw federal antitrust scrutiny, especially where the two companies' businesses overlap most in North America. Halliburton said while it has agreed to sell businesses that generate as much as $7.5 billion in sales, it expects the amount required by regulators should he significantly less.