Baker Hughes to buy rival in oilfield services for $5.5B

HOUSTON -- Baker Hughes Chairman, President and CEO Chad Deaton said in a statement that the transaction will particularly help customers with unconventional gas and deepwater fields.

"It will better position us to drive international growth and to compete for the growing large integrated projects by incorporating pressure pumping into our product offering," he added. Integrated oil companies are active in all phases of the business including production, refining, transportation and marketing.

BJ stockholders will receive 0.40035 shares of Baker Hughes and $2.69 in cash for each share they own. The deal represents a 16.3% premium to BJ's $15.43 Friday closing stock price, the companies said.

BJ's shareholders will have an approximately 27.5% stake in Baker Hughes once the acquisition closes, and two BJ Services board members will join Baker's board.

The is the first major oil services takeover of the year. After larger oil companies reaped hefty profits from last year's crude and gas price rally, some analysts predicted that crumbling stock and crude prices would make smaller oil and gas companies potential takeover targets.