Report: European Commission To Commence 'Phase 2' Probe Into Halliburton's Proposed Acquisition Of Baker Hughes

Shares of Halliburton Company HAL and Baker Hughes Incorporated BHI were each trading lower by nearly 3 percent following news reports that their proposed $26 billion merger faces another obstacle. According to the Financial Times, the European Union's competition commissioner, Margrethe Vestager, will announce the formal "phase 2" probe into the deal. The publication, citing "two people involved," noted that the European Commission's concerns are not immediately clear. However, the European Union is prioritizing the energy sector as a merger of industry giants could result in higher prices for consumers. Halliburton and Baker Hughes have already set an April 30 deadline to complete the transaction. Meanwhile, the European Union has 90 working days to reach a decision after beginning the "phase 2" probe, but this timeframe can be expanded if the companies are obliged to submit additional information.